Fabrice Boigeol, 37,was battered to death in the 'Hi 5' villa at the Morakot Resort in the southern Phuket district of Rawai on April 18.
Police from Chalong arrested Shwe Oo Dam, 24, at the Phanason construction site in Vichit, south of Phuket City, today.
He told officers that he and another Burmese entered the villa intending to rob Mr Boigeol and battered him to death using a piece of wood and a rock.
The Frenchman had been asleep on his bed when the pair broke into the villa.
Earlier, the pair had tried to break in to a shop at Chalong temple, without success. The second man, Maung Myo, 23, is now being pursued.
Shwe Oo Dam had previously been nabbed by police on April 1 over a drugs case. It's believed the men stole a laptop from the villa after killing Mr Boigeol.
A media conference about the case is scheduled for tomorrow at Phuket City Police headquarters.