Q4 2025 is expected to set a new post-COVID record for visitor arrivals

• Korea recorded 17.4 million visitor arrivals through November 2025, up 15.4% year-on-year, surpassing the YTD November 2019 level by 8.6%.
• China remains the leading source market, followed by Japan, Taiwan, and the United States. In addition, strong growth in arrivals from non-traditional markets such as European countries continues to diversify Korea’s tourism base and support its rapid recovery.

New supply momentum expected from upcoming openings in 2026

• There was no significant new supply in Q4 2025, as the planned opening of L7 Cheongnyangni by Lotte (260 keys) was postponed.
• Several openings are anticipated in 2026, including Hyatt Place Pangyo (206 keys) and Maison Delano Seoul (133 keys), alongside other postponed projects.

Solid operating performance underpinning investment confidence for 2026

• The market recorded steady year-on-year growth in RevPAR across all segments, driven by higher ADRs. Seoul’s Luxury & Upper Upscale segment achieved 2.3% higher occupancy than in 2024. Other scales saw slight occupancy declines, but ADR-led RevPAR growth offset the softness.
• Hotel investment activity remained resilient in 2025. Major deals included Courtyard by Marriott Seoul Namdaemun and Four Points by Sheraton Myeongdong, both closed in Q4. Investment volume and deal frequency are expected to accelerate in 2026, supported by renewed investor interest amid a tourism upswing.

Outlook: Korean wave (Hallyu) and global tailwinds set stage for record tourism in 2026

• The near-term outlook for Korea’s hotel market is positive, backed by robust inbound growth led by the Korean Wave. Continued expansion in both ADR and occupancy is likely to sustain RevPAR growth across all market segments into 2026.
• Broader global tailwinds—including a weaker Korean won, increased Chinese arrivals aided by diplomatic frictions between China and Japan, and Korean government support for group tourists from China—are expected to further lift inbound travel, with arrivals potentially surpassing 20 million in 2026.