Myeong-dong hotels are fully booked, and room rates have also risen [Real estate reshaped by foreigners]

As South Korea enters an era of 10 million foreign visitors a year, hotels in downtown Seoul are enjoying such a boom that finding an empty room has become difficult. The rise in foreign tourists has pushed up both occupancy rates and average daily rates, giving the lodging market a strong tailwind.
According to the hotel industry on the 19th, major hotels in Myeong-dong, one of Seoul's best-known downtown tourist districts, maintained solid demand in the first half of this year, with room occupancy rates hovering around 90%.
The Westin Josun Seoul posted first-half occupancy rates of 90% in 2024, 88% in 2025, and 88% in 2026. Four Points by Sheraton Josun Seoul Myeong-dong recorded 89%, 90%, and 87% over the same period. L7 Myeong-dong by LOTTE HOTEL, operated by LOTTE HOTELS & RESORTS, also kept its average first-half occupancy above 85% from last year through this year.
The same trend is visible across the broader Myeong-dong hotel market. According to operating data for hotels in Myeong-dong compiled by the Korea Hotel Association, occupancy rates at major hotels improved overall from a year earlier. The occupancy rate at Hotel A, a three-star property, rose from 87.4% last year to 88.0% this year, while Hotel E, a four-star property, jumped 12.2 percentage points from 65.9% to 78.1% over the same period.
Average daily rates also moved higher. Hotel B's average ADR for January through May rose 6.5% from 245,151 won last year to 261,179 won this year, while Hotel E's climbed 11.6% from 253,989 won to 283,421 won. Analysts say the steady rise in foreign visitors has kept occupancy high, which in turn has lifted room rates.
The share of foreign guests has also continued to increase. At The Westin Josun Seoul, foreigners accounted for 78% of room guests in 2024, 78% in 2025, and 80% in 2026. At Four Points by Sheraton Josun Seoul Myeong-dong, the figure rose from 89% to 90% and then 94% over the same period. L7 Myeong-dong by LOTTE HOTEL also kept the share of foreign guests above 90% every year from last year through this year.
Demand for lodging has remained resilient even in the face of external shocks. In March, concerns were raised that the war between the United States and Iran could dampen overseas travel sentiment, but both The Westin Josun Seoul and Four Points by Sheraton Josun Seoul Myeong-dong still posted occupancy rates of about 84%. In April, both hotels saw occupancy climb above 85%, and L7 Myeong-dong by LOTTE HOTEL also maintained an average occupancy rate above 85% in March and April, indicating that the war had little effect on cancellations or bookings.
The hotel industry says the recent surge in foreign visitors is changing the structure of the lodging market itself. Demand, once centered on group tours, is shifting toward FIT travelers and longer stays. As a result, room sales are becoming more stable, while more visitors are using hotels as a base for shopping, dining, and K-culture experiences.
clean@fnnews.com Lee Jeong-hwa Reporter