[Interview] "Expecting K-Culture Potential"... IHG Group Targets Korean Luxury Hotels

Interview with IHG Group Korea & Asia Regional Manager
Expansion into Luxury Hotels like Regency in Seoul, Jeju, Busan
Korean Demand for Luxury Hotels... Spending 60% More on Accommodation

"K-food, K-fashion, and other K-culture elements are topics that attract the interest of travelers worldwide. Considering the abundant demand for luxury hotels among Koreans, Korea is a highly viable market."

Vivek Bala, Managing Director of IHG Group Korea and Southeast Asia. Provided by IHG Group.

Vivek Balla, Managing Director (MD) of IHG Group for Korea and Southeast Asia, recently stated in an interview with Asia Economy held in Phu Quoc, "We plan to introduce new hotel brands such as Regent, Kimpton, and Vignette Collection in major tourist destinations including Seoul, Jeju, and Busan, covering both urban and resort areas."

The UK-based hotel chain IHG Group is expanding its hotel business in Korea. IHG Group operates hotel brands under management contracts from property owners and owns a total of 19 hotel brands. It operates over 6,500 hotels across 100 countries worldwide, competing in the luxury hotel market with Marriott, Hyatt, Hilton Group, and others. The well-known brand in Korea is InterContinental, which currently operates 'InterContinental Parnas' in Gangnam-gu, Seoul.

IHG Group plans to target the Korean market by leveraging its top six luxury & lifestyle (L&L) brands. The L&L line operated by IHG Group includes ▲Six Senses ▲Regent ▲InterContinental Hotels & Resorts ▲Kimpton ▲Hotel Indigo ▲Vignette.

IHG Group expects that its luxury strategy will attract both inbound tourists and domestic customers simultaneously. Currently, IHG Group captures foreign tourist demand in the Korean market through cost-effective mid-range hotel brands such as 'Holiday Inn (Hongdae, Songdo)' and 'Voco (Myeongdong, Gangnam)'. In terms of luxury hotels, only one property, InterContinental Parnas, is located in major tourist destinations like Seoul, Busan, and Jeju.

Vivek Balla, MD, explained, "There is growing travel demand to experience Korean culture and lifestyle, so we judged that introducing brands that can offer unique lodging experiences is necessary. Looking at the Asia-Pacific region, the middle class is rapidly growing, and purchasing power is increasing."

He also believes that luxury hotels align well with Korean consumers' tendencies to seek quality accommodations for 'hokangs' (hotel vacations) or holidays. According to VISA, Korean travelers spent about 60% more on accommodation during vacations in the first half of this year compared to last year, accounting for 20% of total travel expenses.

Vivek Balla, MD, analyzed, "Koreans are the top inbound customers in Singapore, Thailand, and Vietnam, and they do not hesitate to spend on vacations. Demand for other luxury brands like Kimpton and Indigo is also increasing." In fact, 60% of guests at InterContinental Phu Quoc Long Beach Hotel are Korean. At Regent Phu Quoc, an ultra-luxury resort priced at over 1 million KRW per night, Korean guests make up the highest proportion of all guests.

IHG Group plans to open 'InterContinental Pyeongtaek' and introduce a new luxury hotel brand next year. The new luxury hotel’s location and brand are still under detailed discussion, with Regent being the most likely candidate.

Regent Phu Quoc lobby view. Photo by Minji Lee.

Regent is a luxury brand acquired by IHG Group in 2018 and currently operates 10 hotels worldwide. Considering that Six Senses, IHG Group’s top luxury portfolio, specializes in wellness resorts, Regent is regarded as the top luxury brand among urban hotels. Regent Hong Kong is well known as a premier hotel representing Hong Kong.

Regent plans to launch 12 new hotels in the next five years in locations such as Bali, Kyoto, Sanya, and Shenzhen. Sriram Kailasam, General Manager of Regent Phu Quoc, said, "The brand’s goal is to establish more than 40 hotels in major cities and resort areas over the long term. I understand there are plans to expand to Seoul among urban hotels."

The biggest feature of Regent is its aim to provide hotel services that differentiate it from other luxury brands. This approach is also being implemented at Regent Phu Quoc. Regent Phu Quoc operates a service called 'Taste Studio,' which combines artists and fine dining to offer guests a new gourmet experience. General Manager Sriram Kailasam also mentioned, "Hotel owners from various parts of Southeast Asia have heard about Regent and Taste Studio and have come to experience it firsthand."

Another major strength of Regent is curating experiences tailored to guests’ preferences. While typical luxury hotels or resorts offer yoga, spa programs, and wait for customers to choose, Regent proactively identifies individual guests’ tastes and provides recommendations for local attractions beyond the hotel’s services. General Manager Sriram Kailasam explained, "The core of Regent is not just providing what customers need but delivering experiences."