Hotels in Seoul’s most bustling district Gangnam are shuttering one after another due to the protracted Covid-19 that has kept away foreign guests for more than a year.

The Recenz Premium Gangnam Garosu-gil Hotel, a 17-story business hotel with 217 rooms, closed down at the end of May. It was run by Japan’s business hotel chain Dormy Inn since 2014 but had to close in August 2020 due to the anti-Japanese sentiment as well as virus spread. It reopened in December by hotel platform company Staynlive but failed to survive.

Sheraton Seoul Palace Gangnam Hotel, the first five-star hotel in the region boasting a history of 40 years, closed in late January and Le Meridien Hotel also shuttered the following month as their losses snowballed on weak demand.

Crown Hotel in Itaewon has been put on sale since January with a consortium of Hyundai E&C, Hana Alternative Asset Investment and RBDK named preferred bidder. Glad Live Hotel in Gangnam has also been placed on the market and Tmark was picked a preferred negotiator.

Hotels in central Seoul except for those under large corporate capital are struggling to stay afloat amid absence of foreign visitors on business or pleasure trips.

Many of the hotels are being rebuilt into high-end residential buildings. Sheraton Seoul Palace will be remodeled to a residential-commercial building by property developer The Land who bought the hotel. Real estate developer WealthAdvisors and Hyundai E&C who took over Le Meridien at 700 billion won ($629.5 million) plans to renovate the building as a residential and commercial building.

By Pulse

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