About 100 Billion Won Invested Through Koramco No. 162 Fund, Hotel Set to Open in 2028
Targeting Business and Extended Stay Demand in the Heart of the Industrial Complex
Upgrading the Region’s Accommodation Infrastructure
Koramco Asset Management announced on November 28 that it will establish the “Koramco No. 162 Private Real Estate Investment Company” to develop a Marriott Hotel, a world-renowned hotel chain, within the Gumi National Industrial Complex No. 1 in North Gyeongsang Province. The investment is expected to be around 100 billion won.
The project site is located at 256-25 Gongdan-dong, Gumi-si, North Gyeongsang Province. The development will consist of a 14-story, four-star hotel with one basement level and a total floor area of 21,154 square meters. The hotel is planned to feature 209 rooms and is expected to become the first global brand hotel within the industrial complex. It is anticipated to attract both industrial and business-based demand, as well as MICE (Meetings, Incentives, Conferences, and Exhibitions) demand.
Koramco plans to enhance room competitiveness and operational efficiency by applying the “Four Points by Sheraton” brand, part of the Marriott portfolio. In similar sectors in Korea, the average daily rate (ADR) for Marriott-affiliated hotels is about 20-30% higher than that of domestic brand hotels.
Koramco reduced land risk by purchasing a site owned by the Korea Industrial Complex Corporation. It also secured funding stability through preferred stock investment from the Environmental Improvement Fund. The development is scheduled to begin construction in the second half of next year, after completing the necessary permits and approvals in the first half. The hotel is targeted to open in 2028 after approximately two years of construction.
The Gumi National Industrial Complex No. 1 is the largest industrial hub in North Gyeongsang Province, hosting 2,839 companies including Samsung Electronics, LG Innotek, and Hanwha Systems. The complex employs about 77,000 people. Over the past five years, the number of tenant companies has increased by an average of 4.6% per year. Gumi City records the highest economic power in North Gyeongsang Province, with a per capita gross regional domestic product (GRDP) of 63.72 million won. The average length of stay is also robust at 2.98 days, indicating strong demand for accommodation.
There is a shortage of mid- to high-end accommodation facilities in the region. Currently, only a few older mid-range hotels are in operation, but there are concerns about their accessibility to the industrial complex and the quality of their facilities. The two business hotels within the industrial complex are also considered insufficient to meet the large-scale corporate demand in terms of room capacity and amenities. The development of this global brand hotel is expected to significantly strengthen the region’s accommodation infrastructure.
Koramco plans to improve operational efficiency by leveraging the product competitiveness of the Marriott brand and its global reservation system. Given the consistent business demand in the Gumi Industrial Complex for corporate events, training, and meetings, the hotel’s large banquet hall and meeting rooms are expected to enhance its competitiveness in the MICE sector.
To ensure the stable progress of the project, Koramco signed a memorandum of understanding (MOU) with North Gyeongsang Province and Gumi City the previous day. Both institutions agreed to provide cooperation needed for development and operation, including permits and administrative support. Koramco also plans to contribute to local talent recruitment and revitalization of the regional economy.
Kim Taewon, CEO of Koramco Asset Management, stated, “By supplying the first global brand hotel within the Gumi Industrial Complex, we have elevated the region’s accommodation infrastructure. By combining industrial and MICE demand with the competitiveness of the Marriott brand, we aim to provide stable long-term returns for investors and generate tangible economic benefits such as job creation and economic revitalization for the local community.”
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