Amid the overall stagnation of the consumer market due to the prolonged COVID-19 pandemic, the luxury market is instead showing signs of activation.
According to Lotte Shopping's announced Q2 performance this year, department stores recorded sales of 666.5 billion KRW and an operating profit of 43.9 billion KRW, showing a slight improvement compared to Q1 (sales of 606.3 billion KRW, operating profit of 28.5 billion KRW), riding the wave of luxury consumption recovery.
With the spread of the 'flex' consumption trend (meaning to flaunt one's wealth and abilities or lifestyle), not only luxury goods but also high-end cars have gained attention, and sales of premium home appliances and furniture have surged.
This consumption behavior has also extended to luxury hotels. As demand surged from consumers wanting to experience the services and amenities of premium hotels that are not easily accessible in daily life, the reservation rate for premium rooms has jumped significantly.
According to the hotel industry, Hanwha Resort's general room reservation rate for July to August this year is around 80%, while the reservation rate for the more expensive suite rooms reaches 90-95%. Signiel Seoul, the top-tier hotel operated by Lotte Hotel in Jamsil, Seoul, has recently seen weekend occupancy rates exceeding 90%.
An industry insider said, "Due to the impact of COVID-19 making overseas travel difficult, hotels in Korea where one can enjoy an exotic atmosphere are popular," adding, "Premium hotels naturally allow for social distancing and offer luxurious services and relaxation, so their popularity is expected to continue."
Meanwhile, the 'Cassia' brand hotel of the Banyan Tree Group, which was previously only found in Southeast Asian resorts, is attracting attention as it debuts for the first time in Sokcho.
‘Cassia Sokcho,’ a premium residence hotel constructed by Hanwha Engineering & Construction and developed by Maston No.88 Sokcho PFV Co., Ltd., will be built on 937 Daepo-dong, Sokcho-si, Gangwon-do, with a total floor area of 120,560㎡, a height of 99 meters, 2 basement floors to 26 above-ground floors, and a total of 717 rooms.
It is particularly notable as the first complex in Korea to apply Banyan Tree Group’s residence brand ‘Cassia.’ This means that the top-tier services and amenities of Banyan Tree Group, which operates 47 hotels and resorts in 24 countries worldwide, can be enjoyed domestically without traveling abroad.
‘Cassia Sokcho’ features an integrated design inspired by books, created by architect Kim Chan-jung, who was selected as one of the 20 next-generation architects attracting global attention, enhancing the aesthetic appeal of the exterior. The infinity pool, offering an unobstructed ocean view, includes a sandy beach, giving the feel of a private beach. The rooftop space on the upper floors will be developed as a hip place where guests can enjoy the romance and leisure of the East Sea with a modern sensibility and sophisticated interior.
Other facilities include a luxury spa and sauna utilizing underground mineral water from 1,000 meters below, a 400-seat banquet hall suitable for international conferences and business events, as well as indoor pools, kids’ pools, fitness centers, and restaurants scattered throughout. A library lounge by the world-renowned art book publisher ‘Assouline’ is also planned.
The interior spaces have been carefully designed to provide deep rest and inspiration to guests. Every room is equipped with an indoor Hinoki pool and a balcony, allowing guests to relax their body and mind while enjoying the beautiful scenery of the East Sea. Notably, the spatial layout aligns the bed, bathtub, balcony, and sea in a straight line, giving a feeling akin to staying at a famous overseas resort.
Meanwhile, ‘Cassia Sokcho’ operates under an ownership system through individual registration. Contract holders can use the facility for 30 days a year (7 days during peak season, 7 days on weekends and holidays, and 16 weekdays) by prior reservation at their desired time. The remaining 335 days are entrusted to Banyan Tree Group for operation, and the profits are distributed to the owners.
Contract holders will be the first in Korea to join the Sanctuary Club operated by Banyan Tree Group. Through this, they can enjoy member benefits at all Banyan Tree Group hotels and resorts worldwide within the Sanctuary Club network.
‘Cassia Sokcho’ is classified as a residential lodging facility, thus exempt from various real estate regulations. No subscription savings account is required, and anyone aged 19 or older can purchase regardless of region. It is not subject to resale restrictions or loan regulations, and if not used for residence, it is exempt from comprehensive real estate tax and heavy taxation on multiple homeowners.
The ‘Cassia Sokcho’ currently on sale this month operates a VIP lounge by prior reservation at 85-4 Cheongdam-dong, Gangnam-gu, Seoul.
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