[Asia Economy Reporter Yuri Kim] Global luxury hotels are highly evaluating the growth potential of the Korean market in the post-COVID-19 era and are steadily entering the domestic market. Their strategy is to secure not only domestic staycation demand but also overseas business demand after COVID-19 by emphasizing each brand's differentiated concept.
◆France's Top Luxury Hotel 'Sofitel' Makes Its Domestic Debut
Sofitel Hotels & Resorts, the luxury brand of the global hotel group Accor, officially opened 'Sofitel Ambassador Seoul Hotel & Serviced Residences' in Jamsil, Seoul on the 30th. Sofitel is introducing the 'complex' type, where a hotel and serviced residences are located in one building, for the first time worldwide. With its opening, Sofitel Ambassador Seoul joined the Sofitel collection of over 120 hotels in 45 countries, including the famous 'Sofitel Paris Le Faubourg' and 'Sofitel London St James.'
Sofitel Ambassador Seoul is located on the former site of the Jamsil KT Telephone Office. KT Estate leases the hotel building owned by KT and entrusts its operation to Accor. The building spans from four basement floors to 32 above-ground floors and consists of a total of 563 rooms, including 403 hotel rooms with 59 suites and 160 serviced residences. The rooms are designed to offer views of Seokchon Lake in front of the hotel. On the 32nd floor, 'Club Mill?sime' provides customized services called Cousu Main, including private check-in, breakfast, snacks, and evening cocktail service. The hotel also features five restaurants and bars, banquet halls, a swimming pool, a fitness center, and a spa.
Garth Simmons, CEO of Accor Southeast Asia, Japan, and Korea, said at an online press conference on the 29th, "The Sofitel brand, with over 55 years of history, has landed in Seoul," adding, "Through excellent design, authentic cuisine, and splendid art and culture, we will simultaneously showcase Korean culture and the artistic life of France." Industry insiders expect Sofitel Ambassador Seoul to compete with Lotte Hotel's top-tier brand Signiel and the 5-star Lotte Hotel World, both located in Jamsil.
◆IHG Preparing for the Post-COVID Era
Global hotel company IHG (InterContinental Hotels Group) also held an online press conference on the same day, stating, "We are considering additional introductions of hotel brands in major gateway cities such as Seoul, Busan, and Jeju," and "We recently doubled the size of our domestic organization in preparation for the post-COVID era."
IHG, which owns 6,000 hotels and 17 brands worldwide, currently operates nine hotels under three brands in Korea: InterContinental, Holiday Inn, and Holiday Inn Express. In 2023, it plans to open the International Hotel Boco Pyeongtaek in Pyeongtaek, Gyeonggi Province.
Rajit Sukumaran, head of IHG Southeast Asia and Korea, said, "We expect 33% growth within the next three years through the luxury and lifestyle portfolio that resonates with Korean consumers and the introduction of new brands," adding, "Korea will become the third-largest source market for travelers in the Asia-Pacific region." According to GlobalData, the Korean market is predicted to record the highest growth among Asia-Pacific countries from 2020 to 2025.
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