Hat Yai Emerges as Thailand’s Smart-Budget Travel Star

Hat Yai is fast becoming Thailand’s top smart-budget travel destination, with global hotel brands investing and tourist numbers rising.

Hat Yai Emerges as Thailand’s Smart-Budget Travel Star featured image

Hat Yai Top Budget Destination

The city of Hat Yai is fast becoming popular and one of Asia’s high-value-for-money destinations. According to the latest data from online travel agency Agoda, it ranked third cheapest in Asia from April-May 2025. On average, the nightly accommodation cost only THB 1,345 (USD 42), making it a highly affordable stop for visitors.

Notably, Hat Yai has ranked third for the second time, marking its consistency as a budget destination.

“We are proud to support tourism in Thailand by offering a variety of accommodation options, making travel easier and more enjoyable for all,” remarked Akaporn Rodkong, Country Head for Thailand at Agoda.

Hat Yai Among Most Worthwhile Cities

Overall, tourist numbers are climbing steadily. Hat Yai now draws visitors from across Asia, with its cross-border appeal playing a big role in its success. Sitting just three hours from Penang, the city offers a convenient escape for weekend travelers.

Notably, it now joins major Thai destinations like Bangkok, Phuket, and Pattaya in visitor volume. Consequently, South Korean, Japanese, and Singaporean tourists are also staying longer. Notably, Agoda data shows multi-night stays from these countries are rising year over year.

Global Hotel Brands Take Notice

Recognizing the city’s promise, IHG Hotels & Resorts will launch its first global-branded property in Hat Yai. Specifically, the Holiday Inn Express Hat Yai, set to open in 2027, will feature 160 rooms. This development marks a milestone for the city’s hospitality sector.

More importantly, it signals international confidence in Hat Yai’s potential. IHG Hotels & Resorts will build the hotel in partnership with Park Avenue Property Company.

Vivek Bhalla, Managing Director, South East Asia & Korea of IHG Hotels and Resorts, said, “Expanding our brand presence into a new destination underlines the enduring appeal of our brands as well as IHG’s strong enterprise, including our award-winning IHG One Rewards loyalty programme.”

“Holiday Inn Express Hat Yai is our first venture into the hotel segment, and we are excited to work with the IHG team and confident that together we will create a market-leading midscale hotel that will be enjoyed by business and leisure travelers,” added Prawit Phongprapat, Managing Director of Park Avenue Property Company.

Moreover, the Thai government’s “Amazing Thailand 2025” campaign continues to boost local infrastructure and tourist readiness. This, in combination with an increase in flight connections, strengthens Hat Yai’s position as a tourism hub.

Culture & Convenience at Hat Yai

Overall, beyond affordability, Hat Yai offers rich culture and sensory experiences. Specifically, street food stalls, temples, and vibrant markets like Kim Yong keep visitors exploring. Furthermore, the city’s blend of Sino-Malay traditions adds to its charm.

Additionally, nearby beaches and natural parks enhance the experience for both short and extended stays. As such, tourists enjoy unique attractions without Bangkok’s crowds or Phuket’s prices.

Looking Ahead

If current trends hold, Hat Yai could soon rival Thailand’s biggest tourist cities such as Bangkok, Phuket, and Pattaya. The city combines affordability, international investment, and regional access in a powerful mix.

Photo: Slleong, CC0, via Wikimedia Commons

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