Seoul hotel development pipeline to gather pace from 2028

Thanks to sustained inbound tourism.

Seoul's hotel market continued to benefit from rising inbound tourism in Q1 2026, supporting strong operating performance and renewed investment activity, according to JLL.

No significant hotel openings were recorded during the quarter after the launches of the 260-key L7 Cheongnyangni by Lotte and the 206-key Hyatt Place Seoul Pangyo were delayed again. However, JLL said development activity is accelerating across major tourism districts including Myeongdong, Hongdae, Gangnam and Seongsu, with new supply expected from 2028.

RevPAR growth remained strong across all segments. Luxury and upper-upscale hotels recorded a 22.0% year-on-year increase, supported by a 9.9% rise in ADR to KRW395,000, while the midscale and economy segment posted RevPAR growth of 18.2%.

Investment activity was also robust, with transactions including L7 Hongdae, Shilla Stay Seodaemun and Hotel U5 completed during the quarter.

JLL forecasts inbound arrivals could exceed 20 million in 2026, supporting further RevPAR growth, although prolonged geopolitical tensions could weigh on visitor arrivals from Europe and the Middle East.