Seoul adds over 1,000 new hotel rooms in H1 | Real Estate Asia

Seoul adds over 1,000 new hotel rooms in H1

This includes a luxury project with more than 600 rooms. 

In 1H23, 1,058 rooms entered Seoul’s hotel market, including the 602-room Double Tree by Hilton Pangyo Hotel & Residences and the 160-room Nine Tree Premier ROKAUS Hotel Seoul Yongsan. 

According to JLL, while there are no other luxury hotels planned to open in Seoul by the end of 2023, large-scale mixed-use developments containing hotels are anticipated to be completed in 2030.

Here’s more from JLL:

While the co-living market is still nascent in South Korea, interest in the sector is emerging as the population densifies and the number of single-person households increase. Later in 2023, the 276-room NouDit Hongdae is expected to open, alongside an international co-living brand seeking to enter the market.

RevPAR recovery supported by an uplift in occupancy

Seoul Luxury & Upper Upscale segment revenue per available room (RevPAR) was again at an all-time high, marking an increase of 68% y-o-y to KRW 217,454 as of YTD June 2023. Comparably, with the return of international businesses, the Midscale & Economy segment also showed strong growth of 126% y-o-y to KRW 67,792, recovering to almost reach pre-pandemic levels.

With the resumption of international visitation and group tours, the Midscale & Economy segment is also exhibiting strong recovery, as evidenced by the 55% growth in ADR to KRW 94,231, and 22.6 ppts recovery to 71.9% occupancy as of YTD June 2023.

Outlook: Strategic investors are capturing the opportunity to expand

Several large hotels, such as the 1,100-room Inspire Entertainment Resort, are scheduled to open by the end of 2023. Due to rising land prices, increasing construction costs, rising interest rates and geopolitical uncertainty, supply of luxury hotels in Seoul is limited, and the pipeline is mostly concentrated in satellite cities.

Strong investment momentum resurfaces, supported by enhanced trading performance and positive expectations for the post-pandemic tourism market. From large-scale hotels to mid/economy-scale hotels, transaction activity is anticipated to accelerate over the next 12 months, mainly driven by strategic investors expanding their market presence in South Korea.

Note: Seoul Hotels refers to Seoul's luxury and upper upscale hotel market.


Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.