There is a dynamic transformation taking place in the popular Thai island resort of Phuket. The destination is attracting luxury lifestyle hotels and high-net-worth individuals deciding to call it home.
Phuket-based business advisory C9 Hotelworks and Property Guru International (Thailand) in October 2024 published “The Phuket Luxury Report,” which underlined the island's arrival into a destination of luxury hotel brands and primary market-driving businesses from several sectors, including hospitality, education, retail, medical, and food and beverage.
Fringed by the Andaman Sea, Phuket is the largest island in Thailand.
With a total area of 222 square miles, Phuket is the third-most popular destination in Thailand and has evolved from a popular beach-resort location into one of the world’s most attractive luxury residential markets, boasting top hospitality brands.
According to data from CoStar, Phuket has seen tourism numbers return gradually post pandemic. Full-year occupancy rose from 46.7% in 2022 to 66.8% in 2023 and 69.8% in 2024.
Average daily rate has also reported healthy numbers, rising to 5,128 Thai baht ($152.47) in full-year 2024 from 4,699 baht in full-year 2023 and from 4,158 baht in full-year 2018. Likewise, revenue per available room in 2024 also surpassed the full-year 2023 figure of 3,137 baht, coming in at 3,581 baht. In full-year 2018, RevPAR was 3,037 baht.
Ultra-luxury resorts and brands such as Amanpuri, Rosewood Hotels & Resorts, Andara Resorts & Villas, Trisara and Six Senses Yao Noi, together with elite seaside beach clubs such as Café Del Mar and Catch Beach Club, have attracted wealthy, well-heeled travelers.
Some hotel guests have turned into residents and are investing in prestigious, luxury-branded residences such as Banyan Tree Grand Seaview, Garrya, Laguna Seaside, Kiara Reserve, Sri Panwa, Rosewood and the upcoming Gardens of Eden, which is due to open at the end of 2026 or beginning of 2027.
Bill Barnett, managing director at C9 Hotelworks, said competitive pricing, infrastructure enhancements and guests’ lifestyle preferences all contribute to the soaring demand.
Incoming luxury resorts also have enhanced wellness offerings.
One notable addition to wellness will be Clinique La Prairie, a Swiss brand that is due to open later this year with 40 guest villas through a partnership with management firm Montara Hospitality Group.
Banyan Group in 1987 created one of the first integrated resorts in the destination, Laguna Phuket, a 1,000-acre destination community that now attracts 1 million visitors annually and has evolved into a compound with eight upscale and luxury hotels and resorts, an award-winning golf course, the BDMS Wellness Clinic, an international preschool and kindergarten, and 3,000 private homes.
Soon it will also boast Gardens of Eden, a green-inspired luxury wellness space that has already drawn significant interest from a new generation of investors, according to Bennett, who said this high-value sector is estimated to be worth more than $10 billion.
Ravi Chandran, corporate affairs director at Gardens of Eden, said he had no doubt Phuket is rapidly becoming one of the most exciting luxury markets worldwide.
“Beyond investment opportunities, international buyers are choosing to relocate their families to Phuket full-time. They are drawn by the island’s secure and peaceful environment, paired with an increasing number of international schools and world-class hospitals, making it an ideal place to raise children,” he said.
Chandran added that one standout feature of Gardens of Eden is that 70% of the asset is open spaces.
The development includes lakes, parks and wellness spaces.
As Phuket is the birthplace of both Aman Resorts and Banyan Group, perhaps this rise in luxury should not come as a surprise, Bennett said. The island already has a private jet terminal, several luxury hotels, four marinas that can accommodate superyachts and 13 international schools.
Barnett said Phuket’s luxury residential real-estate market also has experienced remarkable growth in the post-pandemic era, particularly in the multimillion-dollar segment.
Helping along all these real estate numbers is the 6 billion baht expansion of Phuket International Airport, which is designed to manage 18 million passengers annually by 2029.
Other infrastructure initiatives include the construction of the Kathu-Patong Tunnel and the Heroine Monument underpass, both of which have started. They were designed to alleviate traffic congestion and improve connectivity. On the drawing board is a proposed light-rail transit system to further enhance accessibility.