South Korea’s Shinsegae Group will launch its own its hotel brand and expand hospitality business through linkup with its retail business by opting not to extend its partnership with Starwood Hotels and Resorts Worldwide on use of Westin brand beyond expiry in 2018.

As result, Westin Chosun Hotel in central Seoul and Haeundae Beach in Busan will lose the name Westin. Chosun Hotel would be competing directly with Shilla and Lotte Hotels running its independent luxury hotel chains across Korea.

Under the order from Shinsegae Group Vice Chairman and heir Chung Yong-jin, the group has commissioned outside consultant on using existing Chosun or new brand.

Shinsegae now is confident to run its own hotel chains, an industry watcher said.

Westin Chosun in Busan will go under another renovation as part of the group’s envisioning to groom its hotel brand as competitive as Shilla and Lotte.

By Son Il-seon and Choi Seung-jin

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