The Prelude to Busan's Luxury Hotel War... Competitiveness in Rooms and F&B Is Key

Grand Josun Busan, Opening Tomorrow
October Booking Rate Exceeds Industry Average
Four Luxury Hotels Including Signiel
Discount Promotions and Renewal Policies

[Asia Economy Reporter Cha Min-young] Shinsegae Chosun Hotel's ambitious project, 'Grand Chosun Busan,' is entering its final countdown to opening, intensifying competition among luxury hotels in Busan.

According to the hotel industry on the 6th, Grand Chosun Busan recently conducted a dry run (pre-opening trial stay) for internal stakeholders ahead of its grand opening scheduled for the 7th. A participant in the dry run said, "The opening was delayed due to a typhoon, but it has been perfectly restored," adding, "We expect to open in optimal condition and attract premium demand in the southeastern region."

The advance reservation rate for October is reported to far exceed the average level of around 50% typical for newly opened hotels. Although this includes free hotel stay vouchers given to guests who canceled reservations in August and September, the hotel is encouraged by the higher-than-expected booking rate. With the opening of Grand Chosun Busan, a total of about five luxury hotels, including 'Signiel Busan,' 'Park Hyatt Busan,' 'Hilton Busan,' and 'Paradise Busan,' are now competing in the Busan area. As these luxury hotels compete within a limited space, price and service competition is heating up. They have launched membership discount benefits and package promotions. For Grand Chosun Busan, the 'Deluxe City View' room is about 370,000 KRW, making it the most affordable among the five hotels. The most expensive is Signiel Busan, where the 'Grand Deluxe Double Ocean View' room costs about 460,000 KRW. Buffet restaurants are also a point of interest. All five hotels offer buffet services on Sunday lunch for adults at prices ranging from 95,000 to 110,000 KRW, making competition fierce.

Image competition is even more intense. Hilton Busan, operated by the Ananti Group, has announced an image transformation by renaming the hotel to 'Ananti Hilton.' It adds the premium image of the Ananti Group, which boosted its stock price through successful rebranding as 'Ananti Namhae.' Signiel Busan, which opened in August, promotes itself as a '6-star hotel.' The main rival to Grand Chosun Busan is Paradise Busan, located just 85 meters away in a straight line. Given the premium for the Haeundae view, it shares the same view and also emphasizes a family-oriented model. Particularly popular is the 400-pyeong (approximately 1,322 square meters) indoor kids' themed experience world. It offers various care and educational services such as 'BMW Kids Driving' and 'Paradise Kids Time.' Grand Chosun Busan also features family guest-exclusive rooms like the 'Kids Superior Room' and 'Kids Deluxe Room,' and has prepared the 'Chosun Junior' service, which provides exclusive amenities for child guests.