South Korean hotels ride wave of Chinese Gen Z travelers

SEOUL, December 01 (AJP) - South Korea’s hotel scene is in the midst of a renaissance, energized by a surge of overseas travelers who are filling rooms, lifting revenues, and reshaping the country’s hospitality landscape.

At the center of this revival is the return of Chinese tourists — once South Korea’s largest visitor group — whose comeback is accelerating faster than many in the industry anticipated.

More than 14 million foreign tourists arrived in the first nine months of the year, a 16 percent jump, according to the Korea Tourism Organization. Nearly four in ten were from China, where renewed visa-free group travel and a wave of Korean pop-culture enthusiasm, particularly among Gen Z, are fueling demand. Officials expect Chinese arrivals to climb to 6.6 million next year, inching closer to pre-THAAD levels.

Inside South Korea’s hotels, the effects are unmistakable. Luxury properties have nearly regained their pre-pandemic occupancy rates, and average daily room prices have climbed to an all-time high of 306,000 won. Investors are also taking notice: hotel transaction volumes jumped 20 percent last year to 2.16 trillion won, signaling renewed confidence in the sector.

Glad Hotels, a brand under DL Group, has emerged as one of the clearest winners. By tailoring its marketing to young Chinese and female travelers in their 20s and 30s, the chain posted record quarterly results — 27.5 billion won in sales and 9.4 billion won in operating profit. Its Mapo location, set amid bustling cafés and cultural spots, has become a favorite backdrop for visiting Gen Z tourists documenting their trips on social media.

Industry executives say prime locations such as Yeouido, Gangnam Coex Center, and Mapo have become “strategic assets,” attracting international tourists and younger guests who are willing to pay premium rates. Analysts believe the tailwinds will last for years.

“South Korea is benefiting from a structural rise in travel demand,” said Hana Securities researcher Lee Ki-hoon. “A limited hotel supply pipeline, combined with the global spread of K-content, will support record earnings at least through 2027.” He added that any further relaxation of visa rules would provide another lift, particularly from China.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.