Global luxury (ultra-luxury) hotels such as Rosewood and Mandarin Oriental are preparing to enter Korea. The increase in foreign tourists visiting Korea following the spread of Korean Wave content is the reason.
According to relevant industry sources on the 26th, global hotel brand Rosewood will open its first hotel in Korea in 2027 on the United Nations Command (UNC) site in Yongsan District, Seoul. It will have 250 rooms, a fine-dining restaurant, and a large banquet hall. The hotel will be built to house the largest suite room in downtown Seoul.
Swiss hotel group Aman has also finalized its entry into Korea. Aman, known as a hotel frequented by celebrities such as Microsoft founder Bill Gates and Blackpink Jennie, chose Korea as its sixth entry country. It is reviewing the opening of its urban hotel brand "Janu" in Seoul in 2027. The Prima Hotel site in Cheongdam-dong, Gangnam District, is being mentioned as the location.
There is analysis that the recovery of the domestic tourism industry, which had slowed in recent years, is spurring market entry by overseas hotels. Recently, the craze for consuming Korean Wave content has coincided, and the number of foreign tourists visiting Korea is on the rise. According to the Korea Tourism Organization (KTO), the number of foreign tourists visiting Korea in the first to third quarters of this year was 14.08 million, up 16% from the previous year (12.13 million). If the trend continues, the annual figure could surpass 20 million.
New luxury hotels will also line up near Seoul Station, a central business district (CBD) representing northern Seoul. Mandarin Oriental Seoul will be built on the northern Seoul Station station-area complex development site being developed by Hanwha, with a target opening in 2030. It is expected to feature 128 rooms, including suites, as well as Korean and Chinese restaurants, a Korean-style spa, and wellness spaces.
The Ritz-Carlton, the top brand of Marriott International, is also preparing to return to the Korean market for the first time in 15 years. The Ritz-Carlton, which withdrew from its domestic operations in 2016, is targeting a 2031 hotel opening in "Iota Seoul," a complex to be built on the site of the former Namsan Hilton Hotel in Jung District, Seoul.
As the domestic hotel industry moves from a growth phase to a mature phase, the growing demand among consumers for differentiation and premium experiences is cited as a reason various hotel brands are racing to enter. There are also projections that new hotels will gain a competitive edge due to the aging of major luxury hotels in Seoul.
For the time being, the growth of the domestic hotel industry is expected to continue. According to Alskware, a commercial real estate service corporations, the occupancy rate (OCC) of five-star hotel rooms in Korea has recovered to more than 95% of the pre-pandemic level, and the average daily rate (ADR) hit a record high of 306,000 won last year. The hotel transaction market size in the first to third quarters of this year was 2.16 trillion won, up 20% from the previous year (1.8 trillion won).