A surge in international tourists drawn by South Korea’s booming cultural exports has pushed Seoul hotel prices to record levels, with demand outstripping available rooms across the capital.
Average daily room rates in the Seoul–Incheon area climbed to nearly 296,000 won (£167) in September, up 14.6% from a year earlier, according to global hotel data provider STR.
This is the closest the region’s rates have come to the 300,000-won mark.
Occupancy reached 80.8% in August and 81.6% in September, effectively full when luxury suites and reserved rooms are excluded.
STR analysts noted that hotel openings have been limited, with supply growing by only about 2% annually over the past few years.
Mid-range properties are seeing the steepest increases, with rates up almost 14% through August—nearly double the growth rate for luxury hotels.
Weekend bookings have become particularly costly, with Friday and Saturday rates up around 5%, compared with modest midweek rises of about 1–2%.
K-pop tourism fuels demand
The price surge coincides with a record number of international arrivals. Between January and August, 12.4 million foreign travellers visited South Korea, up 16% from the previous year.
The government expects up to 18.5 million arrivals by year-end, potentially surpassing the pre-pandemic record of 17.5 million in 2019.
The reinstatement of visa-free entry for Chinese tour groups in late August has further boosted the tourism rebound. The growing number of independent travellers booking through online travel agencies has also contributed to higher room prices, as these guests typically pay standard retail rates rather than discounted group fares.
The appeal of K-pop, streaming content and hit productions such as KPop Demon Hunters has drawn fans from around the world to Seoul’s landmarks and filming locations.
Strong weekend demand from domestic tourists is also sustaining high occupancy levels across both budget and luxury segments.
New projects fail to keep pace
Industry analysts say the imbalance between soaring demand and limited new supply is driving much of the price escalation. Rising construction costs, scarce land and tighter financing have slowed hotel developments, keeping the city’s room stock almost static.
Luxury hotels have also raised rates amid persistent demand. At Signiel Seoul, rooms now start at around 1 million won (£590) on weekends, while weekday stays average about 800,000 won (£470).
The Four Seasons Hotel Seoul has seen average prices exceed 900,000 won (£530), more than double the city’s five-star average.
Some analysts, however, believe the market could soon level off. After Tokyo experienced similar price highs last year, rates later eased as global demand softened.
A comparable adjustment could occur in Seoul if economic conditions weaken or international travel growth slows in 2026.
