South Korea is suffering from a hotel shortage, as rising inbound tourism numbers come up against a shortfall in new hotel development – with room rates rising, as a result.
This situation is described by Tony Min, head of hospitality Korea at Cushman & Wakefield as the perfect storm. During the pandemic, the hotel sector lost rooms, as buildings were converted to alternative uses. Now, with international arrivals booming and reaching 18.9 million in 2025, existing hotels are enjoying their market power. In the capital, Seoul, the phenomenon is particularly noticeable.
Developers Struggle to React
“Hotel inventory cannot be expanded overnight,” commented Min….