쌍용건설

COVID-19 has dealt a heavy blow to the hotel industry. However, some hotels are turning their forced off-season into an opportunity for a makeover. Several luxury hotels, whose abundant financial resources allow them to invest during the current recession, have decided to close their businesses for almost a year and spend the time on comprehensive remodeling.

According to news announced by the industry on July 1, Grand Ambassador Seoul associated with Pullman, the oldest privately owned hotel in Korea located in Jangchung-dong, Seoul, began remodeling in late April of this year, with the goal of reopening in April next year. The hotel stopped accepting guests into its rooms to overhaul all of its interior and exterior spaces. This is the first remodeling in 20 years since the building’s exterior was renovated in 2001.

It is said that the remodeling will cost tens of millions of dollars. “We are still discussing the specific look of the exterior and the relevant costs,” an official of the hotel said. “We’ve decided to use the current situation as an opportunity to boost our competitiveness, by initiating a complete remodeling.” The industry believes that, in addition to the COVID-19 pandemic, a fire that occurred at the hotel in January hastened the remodeling.

Grand Ambassador Seoul associated with Pullman is the oldest privately owned hotel in Korea, in terms of opening date. The hotel started out as Geumsujang Hotel in 1955. After several expansion and remodeling projects over the years, it finally emerged as a five-star hotel with 413 rooms. In this respect, the hotel building is filled with history. In contrast, the Westin Chosun Seoul, the oldest extant hotel in Korea, began life as a government-run hotel in 1914. After several changes of ownership, it eventually came under the ownership of the Shinsegae Group.

The main contractor of this remodeling project is Ssangyong E&C, which was also in charge of the previous remodeling of the hotel 20 years ago.

COVID-19 has been an unparalleled blow to the hotel industry. In most hotels, the room occupancy rate has ped by 80 percent. “As of late June, hotel room occupancy rates in major areas are just above 20 percent,” an official from the Korea Hotel Association said. “In Seoul alone, some 40 hotels have temporarily closed their doors.”

InterContinental Grand Seoul Parnas, located in Samseong-dong, Gangnam-gu, Seoul, is also undergoing remodeling. The renovation started in January of this year, with the hotel set to reopen in December. The hotel stopped accepting guests for an overhaul of both the interior and exterior spaces. Similarly, Koreana Hotel in Seoul’s Gwanghwamun neighborhood closed its doors in April for the remodeling of its lobby area. The hotel is set to reopen in August.