South Korea Luxury Hotels Market Report and Forecast 2024-2032

South korea Luxury Hotels Market Size

The South Korea luxury hotels market reached a value of approximately USD 2.75 billion in 2023. The market is projected to grow at a CAGR of 5.60% between 2024 and 2032, reaching a value of around USD 4.48 billion by 2032.

South Korea Luxury Hotels Market Outlook

• According to the WTTC, South Korea's Travel & Tourism GDP is projected to increase at an average annual rate of 4.8% by 2032.

• According to USDA, Koreans' monthly per capita spending on HRI in 2022 rose to 141.83 USD increasing by 18.07% from 2021.

• Key players are significantly focusing on improving their brand image in order to improve their market position.

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South Korea Luxury Hotels Market Growth Rate

The luxury hotels market in South Korea includes business hotels, airport hotels, suite hotels, and resorts. The surge in travel and tourism, particularly since BTS gained global popularity, has made South Korea a preferred destination over European and Western countries. National and international events organized by the government and corporations attract renowned guests, prompting a preference for luxury hotels due to their superior amenities.

The Hotel, Restaurant, and Institutional (HRI) food service sector exhibited signs of rebound following sales fluctuations amid the pandemic. In 2021, sector sales amounted to 150.76 trillion KRW (131.7 billion USD), marking a 7.77% increase from 2020 and a 4.41% rise from 2019.

Key Trends and Developments

Increasing sustainable practices in luxury hotels, expansion of the travel and tourism sector, improved online advertising and marketing, and rising disposable incomes are the major trends impacting South Korea luxury hotels market growth.

April 03, 2024

IHG Hotels & Resorts, a prominent global hotel company, is pleased to unveil the agreement for voco Seoul Myeongdong, partnering with Gravity Asset Management's Seoul South Gate Hotel Operations Company and Hotel HDC Co., Ltd.

April 03, 2024

JW Marriott is launching the JW Marriott Jeju Resort & Spa in Seogwipo, South Korea. This new luxury hotel overlooks the coastline of Jeju Island, known as Korea's Hawaii, from atop a cliff.

September 25, 2023

Hilton's rapidly expanding upscale brand, DoubleTree by Hilton Seoul Pangyo, has opened in South Gyeonggi, boasting the largest full-service hotel and residences complex in the area with 432 hotel rooms and 170 residences across 25 floors.

May 04, 2023

Eleven D&C Co., Ltd., a prominent real estate developer in Korea, has selected Rosewood Hotels & Resorts® to oversee Rosewood Seoul, an ultra-luxury hotel scheduled to launch in 2027.

Increasing Sustainable Practices in Luxury Hotels

Luxury hotels in South Korea, like JW Marriott Seoul, respond to sustainability demands by aiming for LEED Gold certification, conserving resources, and enhancing guest experience.

Expansion of the Travel and Tourism Sector

Tourism and travel sector growth spur demand for upscale accommodations, driving expansion in the luxury hotel market to meet the needs of discerning travellers.

Improved Online Advertising and Marketing

Luxury hotels benefit greatly from strong branding and increased online ad spending, appealing to travellers seeking relaxation, particularly older adults, and newlyweds.

Rising Disposable Incomes

Rising disposable incomes increase consumer spending on luxury experiences, driving demand for upscale accommodations in the hospitality industry, particularly in the luxury hotel sector.

South Korea Luxury Hotels Market Trends

The luxury hotel industry benefits from robust branding and increased online ad spending, appealing to travellers seeking upscale experiences for relaxation, especially among older adults and newlyweds. High disposable incomes, convenient online booking, and elevated living standards drive spending on leisure activities, boosting market growth.

Expansion in tourism and changing living standards contribute to steady market growth. Sporting events also drive demand spikes, with hotels accommodating teams and fans. Luxury hotels offer tailored amenities like spas and gyms, while pet-friendly accommodations cater to the rising pet market and single-person households in South Korea.

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South Korea luxury Hotels Industry Segmentation

“South Korea Luxury Hotels Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Business Hotels

• Airport Hotels

• Suite Hotels

• Resorts

• Others

Market Breakup by Category

• Chain

• Independent

South Korea Luxury Hotels Market Share

Independent hotels primarily benefit from being more individualised thus boosting the market growth

Independent hotels differentiate themselves by offering unique experiences tailored to specific target markets, though they are often perceived as more costly and exclusive compared to chains. Unlike chains, which prioritize standardized luxury, independent hotels prioritize individuality and focus on providing exceptional customer service tailored to each guest's needs.

They maintain guest profiles to track preferences and enhance offerings, particularly for repeat visitors. This personalized approach gives them a competitive edge, allowing them to anticipate and exceed customer expectations, fostering loyalty and satisfaction.

Chain hotels, on the other hand, have exceptionally high standards of service, but they often take a more standardised approach to providing for their guests, attending to their needs as they occur and making sure to provide professionalism and high-quality service throughout the chain hotels. Chains hotels provide more affordable prices and an impression of dependability that will entice a larger target market and drive the growth of the luxury hotel market in South Korea.

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Leading Manufacturers in the South Korean Luxury Hotels Market

The companies are a provider of pharmaceutical sourcing and distribution services, delivering pharmaceutical products, business solutions, and value-added services that enhance access to healthcare.

Hotel Lotte Co., Ltd.: Founded in 1973, Hotel Lotte manages hotel properties and operates various businesses including hotels, duty-free shops, theme parks, resorts, and related ventures, also offering short-term lodging services.

Grand Hyatt Seoul: Founded in 1978, Grand Hyatt Seoul, a 5-star hotel near Itaewon and Myeongdong in Seoul, caters to both business and leisure travellers, offering luxury accommodations ideal for families as well.

Conrad Hotels & Resorts: Founded in 1985, with its headquarters in the United States, Conrad Hotels & Resorts, a luxury hotel brand, is a part of Hilton Worldwide, offering upscale accommodations and resorts worldwide.

Hanwha Hotels & Resorts: Founded in 1979, their business focus revolves around two core areas: hospitality and estate services, complemented by subsidiaries including Aqua Planet, specializing in aquarium operations.

Other South Korea luxury hotels market key players are Oakwood Premier, Pyeongchang Alpensia Resort, Josun Hotels & Resorts Inc., and ACCOR SA among others.

Key Highlights of the Report

South Korea Luxury Hotels Market Report Snapshots

South Korea Luxury Hotels Market Size

South Korea Luxury Hotels Market Growth

South Korea Luxury Hotels Market Trends

South Korea Luxury Hotels Market Share

South Korea Luxury Hotels Manufacturers