"Welcome Foreign Visitors..." Seoul Hotel Transactions Reach About 1.5 Trillion Won in the First Half [fnMarketWatch]

[Financial News] As the number of inbound tourists and tourism spending increase, Seoul's hotel transaction volume reached approximately 1.5 trillion won in the first half of this year. In just six months, the figure reached about 85% of the previous year's full-year transaction volume.
According to GenstarMate Research Center on the 22nd, Seoul's hotel transaction volume reached approximately 1.5 trillion won in the first half of this year. Seoul's hotel transaction volume was about 1.8 trillion won in 2025. Although that was slightly lower than in 2024, the market continued its recovery after hitting a low in 2023.
The transaction price per 3.3 square meters was 28.81 million won, the highest level recorded in the report's data. The transaction price per room was 460 million won. During the same period, three- and four-star hotels also recorded a transaction price of 31.13 million won per 3.3 square meters, indicating that price increases were not limited to a few large hotels.
The diversification of buyers stood out in major transactions. In 2025, Hanwha Hotels & Resorts acquired Paraspara Seoul for 420 billion won. JB Asset Management purchased Mercure Ambassador Seoul Hongdae for 262 billion won, backed by an equity investment from Goldman Sachs. In the first half of 2026, CapitaLand Investment Management acquired voco Seoul Myeongdong for 368.6 billion won. Lotte REIT added L7 Hongdae by LOTTE to its portfolio for 265 billion won. NH NongHyup REITs Management acquired Shilla Stay Seodaemun, while Shinsegae Property Investment Management acquired Orakai Daehakro Hotel, BW Signature Collection.
Amid supply constraints and a recovery in tourism demand, efforts are also emerging to repurpose existing assets as hotels. During the pandemic, hotels were converted into offices, residences and other uses. Since then, however, 'reverse conversions'—turning offices and residences into hotels—have emerged. Jongno Pagoda Building was converted into a hotel. A transaction for Hongdae LC Tower is also being pursued on the condition that it be converted into a hotel. GenstarMate's VA (Value-Add) Team has conducted about 10 consulting projects over the past two years on converting existing assets, including offices, into hotels, indicating continued demand for related reviews.
Future supply is expected to focus on upper-tier branded hotels in central Seoul. In 2026, The Grand Lotte Seoul, created through the renovation of the main building of Lotte Hotel Seoul, and Maison Delano Seoul in Samseong-dong, Gangnam, are scheduled to open. Rosewood Seoul is scheduled to follow in 2027, with Paradise Hotel Seoul planned for 2028. However, many of the scheduled hotels are linked to large-scale mixed-use developments or the redevelopment of existing assets, limiting the likelihood of a sharp increase in supply in the short term.
Kim Gyu-jin, head of GenstarMate's R&C Business Unit, said, "The Seoul hotel investment market has moved beyond a recovery in transaction volume and entered a phase in which the way assets are operated is changing." Kim added, "Going forward, rather than simply acquiring assets, rebranding and long-term leasing strategies that can enhance profitability based on location, brand competitiveness and operating structure will become even more important."
[email protected] Kang Gu-gwi Reporter