Upscale acquisitions to dominate Seoul’s hotel investment transactions

Meanwhile, upscale master-leased hotels led the transaction market in H1.

According to a JLL report, the first half of 2025 was active with the closure of upscale, master-leased hotels in the central business district, including the 270-key Mercure Hongdae, 382-key Shilla Stay Mapo and 342-key Four Points Seoul Station Hotel.

“The second half of 2025 anticipates further upscale acquisitions, including Four Points Myeongdong, Shilla Stay Seodaemun and Courtyard Namdaemun, while large portfolios face postponement amid market volatility and prime-location preference,” the report said.

Here’s more from JLL:

While there were no new hotel openings in H1 2024, luxury properties, such as the Westin Seoul Parnas (656 rooms) and Pullman Ambassador Gwangjin (182 rooms), are planned to open by end-2025, with more than +3,000 luxury hotel keys entering the market by 2030.

Upscale to midscale hotels are also entering the Seoul market; notably, L7 Cheongnyangni (260 rooms) and Hyatt Place Pangyo (204 rooms) are set to open in 2025, demonstrating growth in new business hotel supply beyond Seoul’s traditional business districts.

RevPAR maintains robust growth trajectory

Seoul’s Midscale & Economy hotels achieved almost 5% RevPAR growth year-over-year, due to strong occupancy recovery. The segment is poised for stronger performance through year-end with the return of Chinese visitors.

The Luxury & Upper Upscale segment recorded a stronger increase in RevPAR compared to Midscale & Economy, marking another record quarter. Despite slightly moderated growth versus 2023, favourable supply-demand conditions will likely sustain the momentum throughout 2025.