Major hotel franchises are vying to operate a new hotel to be launched as part of the Millennium Hilton Seoul redevelopment project, betting on the site’s lucrative potential.
While the redevelopment project involving the former Millennium Hilton Seoul site near Namsan and Seoul Station is underway, led by local real estate asset manager Igis Asset Management, top global hotel operators have submitted letters of intent to run the redeveloped hotel, industry sources said Thursday.
Each chain has put forward its top-notch luxury brands in the competition, with Marriott pushing for Ritz-Carlton, Hilton for Waldorf Astoria, Hyatt for Alila, IHG for Regent, Accor for Sophitel, Kerzner International for One & Only and Shangri-La for its eponymous brand.
The project, dubbed Iota, will transform the 339,000-square-meter site into a mixed-use property, encompassing office towers, a six-star hotel, retail spaces and a public green area. The total redevelopment area is over 460,000 square meters. Construction is slated to begin in the first half of 2025.
With more foreign tourists visiting Korea, global hotel operators are eyeing to expand their presence here. In 2024, 16.37 million foreign tourists visited Seoul, marking a 48.4 percent rise on-year.
Backed by the growth, hotels in the Seoul area have been enjoying high occupancy rates. The average occupancy rate of major hotels in Seoul was reported to be above 80 percent in November last year, a relatively high number for the offseason.
While the Iota project is expected to wrap up around 2030, the iconic hotel lobby of the Millennium Hilton Seoul will be preserved throughout the redevelopment process. The hotel property featured a main lobby at the entrance which was designed by the nation's leading contemporary architect, Kimm Jong-soung.
“Top hotel brands have shown a willingness to operate a hotel on the Hilton Seoul site. The launch of a global luxury hotel brand will strengthen Seoul’s appeal,” an official from the real estate industry said.
By Im Eun-byel (silverstar@heraldcorp.com)
