Modu Touritz "MD Hotel Expects Performance Improvement by Attracting Chinese Tourists"

Modetour Self-Managed Real Estate Investment Company (hereinafter Modetour REIT), a KOSPI-listed company, announced on the 21st that it expects increased sales and profits from its 100% subsidiary MD Hotel.

On the 7th, MD Hotel signed a joint business agreement related to attracting Chinese tourists with Jomyung Travel Agency, a subsidiary of Daeyoung Universe, a comprehensive travel specialist. Jomyung Travel Agency is an inbound travel specialist for Chinese tourists, composed of representatives from a Chinese travel agency with over 20 years of experience in the travel industry and who achieved first place in attracting Chinese tourists to Korea for three consecutive years.

Jomyung Travel Agency plans to link tourists recruited in China with MD Hotel in the hotel service sector and will begin full-scale customer attraction starting next month. To this end, MD Hotel has decided to allocate accommodation for approximately 20,000 Chinese tourists this year.

A representative from Jomyung Travel Agency said, “We expect to recruit about 150,000 to 200,000 Chinese tourists this year,” adding, “Since the lifting of restrictions on Chinese group tourists in August last year, if China’s tourism policy fully opens, the number of Chinese visitors to Korea is expected to recover to the pre-COVID-19 level of 6 million.”

In addition, MD Hotel plans to induce visits from Chinese customers to the duty-free shops and shopping centers in Seoul and Jeju, which Daeyoung Universe is promoting for establishment, and to expand sales.

MD Hotel expects a significant increase in sales and profitability through higher occupancy rates (OCC) and operation of duty-free shops. In particular, as MD Hotel is a wholly owned subsidiary of Modetour REIT, the improved performance is expected to be fully reflected in the parent company.

A Modetour REIT official said, “We are actively supporting the hotel chain business of our subsidiary MD Hotel in the metropolitan and Jeju areas, and are also considering REIT projects for office facilities and commercial facilities to diversify profitability.”

He added, “We have implemented a high dividend policy for shareholders last year and this year,” and “We plan to continuously implement shareholder-friendly policies by improving profitability through new businesses this year as well.”