Korean institutional investors are avoiding hotel investment. The peak period for institutional hotel investment was around 2012-2013. When the prime office vacancy rate in Seoul’s major districts, which were the main investment targets for institutions, rose sharply to more than 10%, hotels began to attract attention as an office alternative. There was as the same time a sharp increase in Chinese tourists and the lack of accommodations in the city center prompted investment, with hotel operators aggressively attracting investors to expand their businesses, resulting in widespread institutional hotel investment. During this time, Shilla Stay and Lotte City Hotel worked with investors to greatly expand their business. Shilla Stay […]