Hotel Shilla opened 'Shilla Monogram Gangneung' in front of Songjeong Beach in Gangneung on July 31. Shilla Monogram is a resort-focused brand that Hotel Shilla first operated overseas. Gangneung is its first location in Korea.
The fact that over 90% of the total rooms have ocean views attracted consumer interest even before the opening. However, right after the opening, customer complaints poured in, prompting Hotel Shilla CEO Lee Boo-jin to visit the site for inspection just a week after the opening.
According to the industry on the 13th, Hotel Shilla introduced Shilla Monogram in Da Nang, Vietnam, in 2020. Shilla Monogram Da Nang is a five-star hotel that has received high praise from domestic and international travelers. As of that day, travel booking site Expedia rated it 9.6 out of 10, while Booking.com rated it 9.3.
In addition to the five-star rating, the hotel industry classifies hotels into luxury, upper upscale, upscale, upper midscale, midscale, and economy. Shilla Monogram falls into the upper upscale category. It is positioned between the premium luxury hotel 'The Shilla Seoul' and the business hotel 'Shilla Stay.' This strategy aims to target the high-end leisure and resort market at a reasonable price point.
Shilla Monogram is considered the second major new business since Lee Boo-jin became CEO in 2011. The first is Shilla Stay. Shilla Stay has been evaluated as having successfully established itself in the market, expanding to 16 locations nationwide by targeting cost-efficiency demand.
After debuting in Da Nang, Shilla Monogram was launched in Gangneung five years later. It has a total of 917 rooms, of which 602 are residence-type rooms equipped with kitchens and laundry facilities. Some hotel-type rooms (315 rooms) are also furnished as 'kids' rooms' including bunker beds for children. This is aimed at family customers.
For couple guests, rooms equipped with a jacuzzi and private terrace have been provided. Facilities include a kids' play area, private party room, media room, screen golf, indoor and outdoor swimming pools, and a luxury spa.
Hotel Shilla began efforts to secure initial demand by offering accommodation vouchers to Shilla Stay guests. However, contrary to expectations, criticisms have arisen since the opening regarding insufficient service preparation.
One guest said, 'There were footprints on the room floor, and when I wiped it with a wet tissue, it came off black,' adding, 'They said there was a shortage of cleaning staff, and those from Shilla Stay were dispatched to clean.' Another guest mentioned, 'I waited over three hours to check in,' and noted, 'The hotel allowed for a late checkout, but that seemed to delay the check-in for other incoming guests the next day.'
Some guests reported that basic amenities were not stocked, and there were also complaints about musty bedding and odors. Currently, the price of rooms at Shilla Monogram Gangneung ranges from 400,000 to 600,000 won during peak season. This has led some to criticize whether the hotel hurriedly opened in an unprepared state for peak season business.
As a result, the CEO visited Gangneung just a week after the opening on the 7th to inspect room conditions, check-in procedures, and cleaning status. Afterward, some procedures were reportedly expedited. A Hotel Shilla representative stated, 'We appreciate the interest shown in our newly opened hotel,' adding, 'We will improve our services and operational policies to ensure customer satisfaction.'
However, projections suggest that more time is needed for service stabilization. A hotel industry official noted, 'The fundamental problem is that it is difficult to secure skilled staff locally,' pointing out that the JW Marriott in Jeju also received bad reviews for cleaning issues during its initial opening. The recovery of service quality may take time as long as the labor shortage is not resolved. Attention will be focused on whether the CEO's second challenge will be successful.