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Hotel HDC to transform hotels into multifunctional cultural spaces
Hotel HDC marked its 20th anniversary by hosting a forum on changes and outlook in the hotel investment environment in Seoul on June 19.
The event, which also unveiled the company's growth story and future vision, featured a presentation by Kim Min-joon, senior vice president at global commercial real estate firm JLL Korea.
The forum included panel discussions with experts such as Kim Dae-kwan, dean of Kyung Hee University's School of Hotel and Tourism Management; Kim Sung-eun, director of the Korea Tourism Organization; and executives from Deloitte Consulting and asset management firms. The discussions focused on the evolving hotel investment landscape and prospects for the future.
Kim of JLL Korea noted, 'After the (COVID-19) pandemic, hotels were seen as high-risk assets, leading to investor aversion. However, since 2022, hotel demand has recovered rapidly, demonstrating greater resilience than other commercial real estate sectors such as office or retail.' He added, 'Luxury hotels and resorts, driven by rebound in travel and increased demand for luxury tourism, have seen higher average daily rates and RevPAR (revenue per available room) than prepandemic levels, making them more attractive to investors.'
The forum also addressed a shift in investment strategies. 'Office vacancies have risen, and retail faces profitability risks due to e-commerce,' Kim explained. 'As a result, there's a significant increase in institutional and fund demand for hotels as a diversified investment asset.' He highlighted that more investors are converting existing office, retail and residential buildings into hotels, thereby reducing the risks and costs associated with new developments.
Hotel HDC, known for launching the Park Hyatt Seoul in 2005, emphasized its continued expansion in the luxury and lifestyle hotel market. The company has since opened Park Hyatt Busan in 2013, Andaz Seoul Gangnam in 2019 and Voco Seoul Myeongdong in 2024.
Looking ahead, Hotel HDC is advancing with major urban development projects, including a Marriott hotel as part of the "Seoul One Project," a 4.5 trillion-won ($3,303,722,193) development near Kwangwoon University Station, and the renovation of Doosan Tower in Dongdaemun into a luxury hotel.
The company is also expanding into the food and beverage sector, with plans to partner with renowned French pastry brand Pierre Herme. 'Pierre Herme is not just a dessert brand, but a strategic partner that can elevate the culinary experience across our hotels,' said a Hotel HDC business development representative.
HDC CEO Lee Sung-ryong concluded, 'The next 20 years will focus on expanding content and customer experience, enhancing our strategy to transform hotels into multifunctional cultural spaces.'
