▶ RSQUARE Research Center publishes 'Hotel Market Report: Seoul, Becoming a Luxury Hotel Hub on the K-Wave'
▶ 2025 hotel transaction value at 1.8 trillion KRW; shift toward transactions led by asset management companies
▶ Record-high foreign visitors and K-culture craze; global luxury brands set to enter Korea en masse around 2030
The South Korean hotel market in 2025 was recorded as a year with the highest investment interest in recent years, yet actual transactions showed a selective pattern, concentrating on 3 and 4-star hotels primarily in Seoul. Regionally, the transaction gap between Seoul and non-metropolitan areas widened, and strategic investments led by asset management companies (AMCs) became the market mainstream.
The RSQUARE Research Center (Head: Kang-min Ryu), a comprehensive commercial real estate service firm, released the '2025 Hotel Market Report: Seoul, Becoming a Luxury Hotel Hub on the K-Wave' containing these findings.
According to the report on the 18th, the hotel transaction value in Seoul, Busan, and Jeju for 2025 was tallied at approximately 1.8 trillion KRW. This is a decrease of about 450 billion KRW compared to the previous year. Given that interest in hotel assets has been at its highest in years, the actual transaction volume fell short of expectations.
By region, the concentration of transactions in Seoul was distinct. While numerous deals were closed in Seoul, Busan and Jeju remained at levels similar to or lower than the previous year.
The most significant characteristic of Seoul hotel transactions is the high volume of deals centered on 3 and 4-star hotels. Various scales of transactions took place—ranging from small 20-billion-KRW deals to large 400-billion-KRW deals—centered around Guro, Mapo, Hongdae, and Seoul Station, including 'Four Points by Sheraton Josun Seoul Station,' 'Shilla Stay Mapo,' and 'Courtyard by Marriott Seoul Namdaemun.' This is a departure from the past when 5-star hotel transactions dominated the entire market.
Price indicators also confirm this trend. Since 2024, the average transaction price per pyeong for tourist hotels in Seoul has formed between 28 million and 30 million KRW. The Price Per Pillow (PPP) has also established a general transaction standard of over 500 million KRW in the recent market. However, these acquisitions were mainly driven by operational purposes—premised on brand repositioning and remodeling—rather than simple long-term holding.
The profile of buyers has also changed. In the past, corporations looking to operate hotels directly and AMCs for investment purposes participated together. However, in 2025, AMCs led the acquisitions. Notably, global institutional investors such as GIC, Goldman Sachs, and Invesco began injecting capital into domestic hotel assets. They are employing strategies to generate operational income while seeking capital gains through resale once the asset value rises in the mid-to-long term.
Meanwhile, the expansion of inbound demand is identified as a factor that will drive structural changes in the hotel market in the mid-to-long term. As of October 2025, the number of foreign visitors to Korea reached 15.82 million. This is an increase of 1.23 million compared to the same period in 2019, and is expected to break the all-time record. Hotel spending in Seoul, Busan, and Jeju reached 985.4 billion KRW from January to November; considering the year-end peak season, it is highly likely to exceed 1 trillion KRW annually. Along with the spread of K-culture, increasing demand for 'K-Medical' based on competitive medical and healthcare services is also supporting hotel demand.
However, a challenge remains: there are only 26 five-star hotels in Seoul despite the growing inbound demand. RSQUARE predicts that if global luxury hotel brands—such as Aman, Mandarin Oriental, Rosewood, and Ritz-Carlton—make their full-scale entry into Seoul around 2030, it will serve as an opportunity for Seoul to strengthen its position in the Asian luxury hotel market beyond just expanding supply.
"The hotel industry is evolving into an asset class where operational capabilities and brand competitiveness determine performance beyond mere accommodation functions," said Gyu-jung Choi, a researcher at the RSQUARE Research Center. "The large-scale entry of global luxury hotel brands around 2030 will provide a momentum for Seoul to elevate its status as a luxury hotel hub."
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▶ RSQUARE Research Center publishes 'Hotel Market Report: Seoul, Becoming a Luxury Hotel Hub on the K-Wave'
▶ 2025 hotel transaction value at 1.8 trillion KRW; shift toward transactions led by asset management companies
▶ Record-high foreign visitors and K-culture craze; global luxury brands set to enter Korea en masse around 2030
The South Korean hotel market in 2025 was recorded as a year with the highest investment interest in recent years, yet actual transactions showed a selective pattern, concentrating on 3 and 4-star hotels primarily in Seoul. Regionally, the transaction gap between Seoul and non-metropolitan areas widened, and strategic investments led by asset management companies (AMCs) became the market mainstream.
The RSQUARE Research Center (Head: Kang-min Ryu), a comprehensive commercial real estate service firm, released the '2025 Hotel Market Report: Seoul, Becoming a Luxury Hotel Hub on the K-Wave' containing these findings.
According to the report on the 18th, the hotel transaction value in Seoul, Busan, and Jeju for 2025 was tallied at approximately 1.8 trillion KRW. This is a decrease of about 450 billion KRW compared to the previous year. Given that interest in hotel assets has been at its highest in years, the actual transaction volume fell short of expectations.
By region, the concentration of transactions in Seoul was distinct. While numerous deals were closed in Seoul, Busan and Jeju remained at levels similar to or lower than the previous year.
The most significant characteristic of Seoul hotel transactions is the high volume of deals centered on 3 and 4-star hotels. Various scales of transactions took place—ranging from small 20-billion-KRW deals to large 400-billion-KRW deals—centered around Guro, Mapo, Hongdae, and Seoul Station, including 'Four Points by Sheraton Josun Seoul Station,' 'Shilla Stay Mapo,' and 'Courtyard by Marriott Seoul Namdaemun.' This is a departure from the past when 5-star hotel transactions dominated the entire market.
Price indicators also confirm this trend. Since 2024, the average transaction price per pyeong for tourist hotels in Seoul has formed between 28 million and 30 million KRW. The Price Per Pillow (PPP) has also established a general transaction standard of over 500 million KRW in the recent market. However, these acquisitions were mainly driven by operational purposes—premised on brand repositioning and remodeling—rather than simple long-term holding.
The profile of buyers has also changed. In the past, corporations looking to operate hotels directly and AMCs for investment purposes participated together. However, in 2025, AMCs led the acquisitions. Notably, global institutional investors such as GIC, Goldman Sachs, and Invesco began injecting capital into domestic hotel assets. They are employing strategies to generate operational income while seeking capital gains through resale once the asset value rises in the mid-to-long term.
Meanwhile, the expansion of inbound demand is identified as a factor that will drive structural changes in the hotel market in the mid-to-long term. As of October 2025, the number of foreign visitors to Korea reached 15.82 million. This is an increase of 1.23 million compared to the same period in 2019, and is expected to break the all-time record. Hotel spending in Seoul, Busan, and Jeju reached 985.4 billion KRW from January to November; considering the year-end peak season, it is highly likely to exceed 1 trillion KRW annually. Along with the spread of K-culture, increasing demand for 'K-Medical' based on competitive medical and healthcare services is also supporting hotel demand.
However, a challenge remains: there are only 26 five-star hotels in Seoul despite the growing inbound demand. RSQUARE predicts that if global luxury hotel brands—such as Aman, Mandarin Oriental, Rosewood, and Ritz-Carlton—make their full-scale entry into Seoul around 2030, it will serve as an opportunity for Seoul to strengthen its position in the Asian luxury hotel market beyond just expanding supply.
"The hotel industry is evolving into an asset class where operational capabilities and brand competitiveness determine performance beyond mere accommodation functions," said Gyu-jung Choi, a researcher at the RSQUARE Research Center. "The large-scale entry of global luxury hotel brands around 2030 will provide a momentum for Seoul to elevate its status as a luxury hotel hub."