Grand Josun Busan to Open on the 25th of Next Month
Grand Hyatt Jeju to Open at the End of September
Mid-sized Companies Like Yojin Construction and Hyosung Also Accelerate
Perspective view of 'Grand Josun Busan' by Shinsegae Chosun Hotel, opening on the 25th of next month
[Asia Economy Reporter Cha Min-young] The luxury hotel industry, which was shaken by the COVID-19 pandemic in the first half of the year, is preparing to welcome summer guests. Although travel demand has not fully recovered yet, the industry has decided that it can no longer delay reopening.
According to industry sources on the 29th, 'Grand Josun Busan,' operated by Shinsegae Chosun Hotel, is scheduled for a grand opening on the 25th of next month. Initially, the industry expected the opening as early as July this year, but due to the COVID-19 situation and other factors, the final opening was confirmed for the end of August. In line with this, the 5-star 'Westin Chosun Hotel Busan,' a hotel of the same group in Busan, is also expected to accelerate its renovation. Grand Josun Busan is a higher-tier brand than the 'Chosun Hotel' brand operated by Shinsegae Chosun Hotel. It is located only 500 meters in a straight line from Lotte Hotel's 6-star hotel 'Signiel Busan,' which opened last month. As Shin Yong-jin, Vice Chairman of Shinsegae Group, and Shin Dong-bin, Chairman of Lotte Group, are both putting effort into the hotel business, a pride battle between the heads of the groups has become inevitable.
Hanwha Hotels & Resorts is also opening the resort-style hotel 'Yeosu Belmer' in the Ungcheon district of Yeosu at the end of this month and starting to attract customers. At the end of September, Lotte Tour Development plans to open 'Grand Hyatt Jeju,' the largest hotel in the province, located in Jeju Dream Tower in Nohyeong-dong. Due to COVID-19, Lotte Tour Development even conducted non-face-to-face video interviews to hire staff for Jeju Dream Tower.
Hotels operated by mid-sized companies are also in the final stages of preparation, aiming to open during the summer season in August and September. 'Capital Hotel' in Itaewon, operated by Yojin Construction, will reopen next month under the 'Mondrian' brand. Mondrian is a 5-star boutique hotel brand owned by SBE, a global hotel and tourism company headquartered in California, USA.
Jeju 'Hotel Seom Oreum,' owned by DSDL, which operates Fraser Place, is also tentatively planning to reopen its delayed renovation on the 14th of next month and is preparing for the opening. The hotel renovation work began in March and took longer than initially expected due to the COVID-19 situation. Along with the renovation reopening, the outdoor swimming pool and jacuzzi will open simultaneously to coincide with the summer season.
The foreign company Accor Ambassador Korea plans to open 'Mercure Ambassador Seoul Hongdae' next month. Later this year, it plans to open a Fairmont Hotel in one of the four buildings of Park One in Yeouido. Being located right next to Hyundai Department Store Yeouido, considered a new player in the Gangbuk commercial district, provides a geographical advantage for attracting VIP customers. KT's real estate development subsidiary, KT Estate, will introduce the Accor-affiliated luxury hotel Sofitel in Jamsil early next year.
The reason hotels are opening despite the risks of COVID-19 is interpreted as the result of trust in the domestic quarantine system. In particular, luxury hotels have been perceived as relatively low-risk places for infection, increasing related demand. In the Jeju region, luxury hotels have already achieved over 90% of their target occupancy rates. The government has also contributed to revitalizing nationwide tourism by increasing the number of beneficiaries of the 'Worker Vacation Support Project,' implemented since 2018, from 80,000 to 120,000 this year. Large-scale discount events by online travel and hotel intermediaries (OTAs) such as Yanolja and Trip.com also played a role.
An industry insider explained, "With overseas travel blocked, the summer peak season has actually increased visitation demand for local luxury hotels in places like Busan and Yeosu, which is a positive development. In Seoul, foreign business operations remain difficult, but the cost of delaying openings is considered greater, so hotels are proceeding with their scheduled openings."
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