Which institutional hotel brands will enter Seoul in the near-term?

Mercure Hotel Ambassador Seoul Magok is expected to set foot in 2025.

There are no new graded hotel openings for the remainder of 2024 according to JLL, with the exception of Voco Myeongdong, which is a conversion. The lack of new supply has resulted in a favourable supply-demand dynamic in the near term.

Institutional brands set to enter the Seoul market according to JLL are: Mercure Hotel Ambassador Seoul Magok (400-key) in 2025, followed by Maison Delano (83-key), Pullman Hotel Gwangjin (182-key) and Rosewood in late 2027.

Here’s more from JLL:

The Midscale & Economy hotel segment in Seoul sees significant growth, with RevPAR surging y-o-y and exceeding 2019 levels.

Luxury & Upper Upscale segment achieved an all-time high RevPAR, surpassing pre-COVID-19 figures. The second quarter of 2024 sees RevPAR recording a substantial increase from 2019 levels.

Outlook: Resurgence in strategic investor interest, promising future outlook

Luxury and Midscale segments to fully recover by end-2024 as international visitors return. Short-term growth to stay robust, but medium-term may stabilise due to global uncertainties.

Due to a tight lending environment, short-term transactions to be driven by international strategic investors seeking value-add opportunities. However, Seoul’s promising market fundamentals attract substantial interest, enhancing the overall outlook.