Chosun Hotel & Resort to convert two hotels, target 14 by 2030

By Daniel Okafor

Chosun Hotel & Resort will open two converted hotels simultaneously in the first half of 2027, lifting its South Korean portfolio to 11 before targeting 14 properties by 2030.

They will be the company’s 10th and 11th hotels: a 232-room conversion in Seoul’s Jongno district and a 427-room conversion in Yeosu, South Jeolla Province. Together, the two properties cover 659 rooms.

The operator of South Korea’s oldest hotel, now marking its 112th anniversary, announced the mid- to long-term business plan on the 2nd. Its model avoids new construction. Chosun buys operating hotels, installs its brand and operating system, then reopens them under the Chosun name.

What does buying existing hotels change for the 2027 openings?

Both acquisitions are complete, and both hotels will operate under a brand-conversion model. Chosun formed a consortium with Shinsegae Property Investment Management to carry out the asset acquisitions and development. It also used a project-REIT structure separating the asset-holding entity from the hotel-operating company, reducing capital tied up in construction and the initial investment burden.

In Jongno, the company acquired the four-star Orakai Daehakro Hotel, completed in 2019, in June 2026. Conversion work starts in January 2027, and new signage goes up in the first half.

The Insadong-area location puts Gwanghwamun Square, Bukchon Hanok Village, Changdeokgung, Changgyeonggung and Jongmyo within walking distance. Chosun expects that cluster of tourism and cultural assets to capture both domestic and foreign demand.

In Yeosu, the acquisition of the 427-room Ramada Plaza by Wyndham Yeosu, completed in 2020, finished in October 2026. The rebrand gives Chosun its first base in the Honam region. Its core tourism and leisure location can serve individual travelers, group tourists and corporate events.

After the two 2027 openings, Chosun plans locations in Cheongna, Incheon, and Andong, North Gyeongsang Province, completing a 14-hotel system by 2030. The expansion also rides an industry trend: inbound demand has recovered since COVID-19, encouraging hotel operators to pursue asset-light strategies and brand expansion simultaneously.

The flagship investment program

Investment in existing flagships runs alongside the acquisitions. Josun Palace, which opened in Gangnam, Seoul, in May 2021, now draws more than 80% foreign guests. Chosun is forming a dedicated Guest Experience team for them.

The company is converting part of a guest-room floor into 1,256 square meters, or 380 pyeong, of auxiliary space at Josun Palace. The plan includes a luxury urban wellness spa, a high-end Japanese restaurant with private omakase, and a lounge for business meetings and networking.

Construction on the 26th-floor wellness club and 27th-floor guest-room floor begins in December 2026. The spaces will open in the first half of 2027.

At The Westin Josun Seoul, newly renovated suites began selling Oct. 26, 2026. The 90-square-meter Premium Executive Suite has a residence-style layout, wood finishes, restrained furnishings, smart TVs and premium clothing-care systems. Family-twin rooms now have two queen beds. In-room cocktail recipes use South Korean premium liquor and tea to introduce foreign guests to the country’s liquor and tea culture.

The Westin Josun Busan also completed a roughly three-year Grand Ballroom renovation. The ballroom accommodates up to 500 people, now has a higher ceiling, and uses lighting modeled on the hotel’s eaves and blue tiles. A new flow to the outdoor garden strengthens the Haeundae property as a venue for large corporate events and weddings.

The economics behind the expansion

Buying an operating hotel and transplanting a brand shortens the time to opening and avoids tying up as much capital in new construction. It also lowers the initial investment burden. Project REITs have become a common structure for operators seeking brand profit while reducing financial burden.

Because the plan leaves purchase prices, capital spending, target returns and projected margins undisclosed, average daily rates and occupancy are the practical tests. Chosun also must manage service standardization across Josun Palace, the Westin Josun brand and newly acquired hotels at different grades. Industry officials say the gap between those tiers could directly determine average daily rates and occupancy.

Choi Hoon-hak, CEO of Chosun Hotel & Resort, said: “2027 will be an important turning point as Chosun Hotel & Resort’s hotel business moves into a new growth phase, with new openings at major South Korean locations pursued in earnest.”

He added: “Based on more than 110 years of accumulated hotel operating experience and service capabilities, we will continue to expand our hotel portfolio while strengthening the customer experience at our flagship hotels, further solidifying our competitiveness as South Korea’s leading hospitality company.”

Yeosu and Andong also carry seasonal volatility. Observers identify conversion speed and renovation-driven room-rate increases as the key variables in determining whether Chosun reaches its 2030 target.

If Chosun completes all 14 locations by 2030, industry officials expect faster brand conversions and higher room rates to reshape competition in South Korea’s luxury hotel market.