‘A new beginning for Imperial Palace Seoul, which has been protecting Gangnam for 35 years.’
Hotel Imperial Palace Seoul, operated by Taesung21, officially opened as ‘Grand Mercure Imperial Palace Seoul Gangnam’ in partnership with the French global hotel chain Accor Group on Oct. 10.
Located in Nonhyeon-dong, Gangnam-gu, Seoul, the Imperial Palace Hotel has been considered a homegrown luxury hotel and long-standing establishment in the Gangnam area since it opened in 1989 as Hotel Amiga. However, it could not withstand the prolonged impact of the COVID-19 pandemic and entered indefinite closure in 2022. It resumed operations in June.
The transformation of the homegrown Imperial Palace into the Grand Mercure brand aims to leverage existing acknowledgment while adding global brand expertise to create new demand, including for overseas tourists. The hotel plans to enhance service quality to a level fitting for the global Grand Mercure brand while integrating with the characteristics of the existing hotel and region.
The hotel stated, “This rebranding is aimed at creating new experiences and value based on 35 years of hotel management expertise.” It plans to not only maintain the existing business and MICE (meetings, incentives, conventions, exhibitions) demand but also introduce products and services that combine regional tourism and cultural content to cater to leisure customers.
Grand Mercure is one of Accor Group's premium brands and this marks the third opening in the country. It is in the same category as brands such as Pullman and Swissôtel. Accor Group previously opened Grand Mercure Ambassador Hotel Residence Seoul Yongsan in 2017 and followed it with Grand Mercure Ambassador Changwon.
Vincent Le Ray, Chief Executive Officer of Accor Ambassador Korea, noted, “This special hotel has joined the continuously growing Accor Ambassador Korea family,” adding that “Accor operates over 5,700 hotels in more than 110 countries worldwide, and this hotel will offer various benefits such as Accor's loyalty program, ALL (Accor Live Limitless).”
ALL is a membership program with over 1 million members only in Korea. Customers of Grand Mercure Imperial Palace Seoul Gangnam will be able to take advantage of membership programs that include not only accommodations but also dining, banquets, and various lifestyle experiences.
The hotel offers 224 rooms and suites, including a 61-pyeong (about 202㎡) royal suite. Each space features interiors reflecting Korean craftsmanship. Among them, there are 90 serviced residences for long-term guests. Dining options include the buffet restaurant Familial, Chinese restaurant Cheonsan, café lounge Delmar, and The Bar.
Recently, the entry of global hotel chains into Korea has accelerated. Marriott has acquired the operating rights for the InterContinental Hotel Seoul COEX in Samseong-dong, Gangnam-gu, Seoul, and plans to reopen it next year as a Westin hotel. Luxury hotel brand Aman Group is also planning to open a Janu-branded hotel in Seoul in 2027 in collaboration with Shinsegae Property.
Luxury hotel Rosewood will open on the site of the United Nations Command in Itaewon-dong, Yongsan-gu, Seoul, under the name ‘The Parksides Seoul.’
The reason many global brands are targeting the Korean market is due to the increase in tourism demand from factors such as the K-pop craze, and the domestic hotel market is also on the rise. From January to October this year, the number of visitors to Korea reached 13.74 million. This is a 54.7% increase compared to the same period last year and represents 94% of the same period in 2019. By country, the highest numbers of visitors came from China (4 million), Japan (2.63 million), Taiwan (1.24 million), and the United States (1.12 million).
The growth of the Korean hotel market is also steep. According to global market research firm Statista, the revenue of the Korean hotel industry plummeted to 4.45 trillion won during the COVID-19 pandemic in 2020. However, it has increased annually since then, reaching 8.79 trillion won in 2022. Last year, it surpassed 10 trillion won and is expected to exceed 12 trillion won by 2025.
Nearby the Grand Mercure Imperial Palace Hotel, competitors such as Andaz Hotel and Chosun Palace are also present. Riverside Hotel is also set for reconstruction. Kim Kyung-rim, General Manager of Grand Mercure Imperial Palace, stated, “It's hard to pinpoint a perfectly aligned competitor, but the Andaz Hotel, which is closest in location, is a benchmarking target in terms of pricing.”
He continued, “The goal of Grand Mercure Imperial Palace Seoul Gangnam is to establish itself as a hotel that connects the destination and travelers, providing unforgettable memories.”