IMARC Group has recently released a new research study titled “South Korea Luxury Hotel Market Report by Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Others), Room Type (Luxury, Upper-Upscale, Upscale), Category (Chain, Independent), and Region 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

South Korea Luxury Hotel Market Overview

The South Korea luxury hotel market size reached of USD 2.2 Billion in 2024. It is projected to expand to USD 3.7 Billion by 2033, growing at a CAGR of 5.51% during the forecast period 2025-2033. The growth is driven by the tourism industry's expansion, technological advancements enhancing guest experiences, and the development and refurbishment of luxury hotel properties.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

South Korea Luxury Hotel Market Key Takeaways

  • Current Market Size: USD 2.2 Billion in 2024
  • CAGR: 5.51% during 2025-2033
  • Forecast Period: 2025-2033
  • Significant growth due to expansion in the South Korea tourism industry.
  • Increasing use of technological advancements such as automated check-in and in-room smart controls enhances guest experiences.
  • Development of new luxury hotel properties and refurbishment of existing ones bolster market growth.
  • The country’s position as a hub for international events and business travel increases demand for upscale accommodations.

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Market Growth Factors

The South Korea luxury hotel market's growth is primarily propelled by the significant expansion in the tourism sector. Increasing popularity of South Korea as a travel destination, fueled by its vibrant culture, rich history, and stunning natural landscapes, has attracted a growing number of international visitors. This uptrend has escalated demand for luxury hotels that provide exceptional amenities and services tailored for discerning travelers.

Technological innovations have played a vital role in enhancing guest experiences at luxury hotels across South Korea. Facilities embracing automated check-in processes and in-room smart controls improve convenience and personalization, thereby making luxury hotels more appealing to tech-savvy tourists and business travelers. These advancements represent a major factor driving market growth.

Government initiatives promoting tourism and incentivizing investments in hospitality are critical catalysts in this market. Policies encouraging the development of new luxury hotel properties and refurbishment of existing establishments have elevated the overall accommodation standards nationwide. Additionally, South Korea's modern infrastructure and advanced convention centers position it as a prime location for international events and conferences, further fueling demand for upscale lodging.

Market Segmentation

Type Insights:

  • Business Hotels: Provide accommodations primarily for business travelers, often located in city centers or business districts.
  • Airport Hotels: Situated near airports, these hotels cater to transit passengers and business travelers needing convenient access to air transport.
  • Suite Hotels: Feature spacious suites with separate living and sleeping areas, offering upscale facilities and privacy.
  • Resorts: Typically located in popular leisure destinations, resorts offer extensive recreational and wellness amenities.
  • Others: Include other luxury hotel types that do not fall into the above categories.

Room Type Insights:

  • Luxury: Rooms that offer premium furnishings, advanced technology, and exceptional comfort.
  • Upper-Upscale: Rooms providing high-quality amenities and upscale design, slightly below luxury standards.
  • Upscale: Well-appointed rooms with quality furnishings and services, catering to a broad high-end clientele.

Category Insights:

  • Chain: Hotels operating under a recognized brand or franchise network providing consistent service standards.
  • Independent: Standalone hotels not affiliated with any chain, offering unique and personalized experiences.

Regional Insights

The dominant region covered in the market includes the Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and Others. The report details the comprehensive analysis of these major regional markets, with no specific market share or CAGR statistics provided explicitly. These regions represent the principal areas where luxury hotel demand is concentrated, influenced by urbanization, tourism hotspots, and business hubs.

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