Paradise Group to expand business portfolio with luxury hotel in central Seoul

Food & Travel

Published: 02 Jul. 2024, 18:30 Updated: 03 Jul. 2024, 18:28

Paradise Group to expand business portfolio with luxury hotel in central Seoul

A computer-generated image of an upcoming luxury hotel from the local hospitality conglomerate Paradise Group, slated to open in Seoul by 2028. [PARADISE GROUP]

Local hospitality conglomerate Paradise Group is looking to expand its reach in the tourism sector through a more diverse business portfolio, including a new luxury hotel in central Seoul.

Slated to open in the Jangchung-dong neighborhood in Jung District by 2028, the hotel is designed to include around 200 rooms — all suites — over 23 floors, according to Paradise Group CEO Choi Jong-hwan during a press conference at Paradise City on Tuesday. Construction is set for sometime in the fourth quarter of this year.

“We expect to raise the bar of luxury hotels in Seoul with high-end services and facilities that are yet to exist in Korea,” said Choi. “With the 50 years of know-how we’ve accumulated in the industry, we will launch a symbolic property that exceeds all the five-stars in central Seoul, and come to be known as the number one high-end hotel brand in Korea.”

Paradise Group CEO Choi Jong-hwan gives an overview of the company to the press at Paradise City in Incheon on Tuesday. [PARADISE GROUP]

Paradise Group currently runs four casinos with locations in Seoul, Incheon, Busan and Jeju. It also runs three hotels and resorts: Paradise City in Incheon, Paradise Hotel Busan and Paradise Spa Dogo in South Chungcheong.

The new hotel is part of Paradise’s new, long-term Beyond No.1 Paradise Value Up project slated through 2028, purposed to upgrade the brand and diversify its business in the post-Covid era.

“What we hope to do in the coming days is to bring the Paradise brand closer to people,” said the company's Communications Director Bae Jin-won in the same press conference. “Beyond our casino and Paradise City resort, we are striving to expand our brand image.”

A computer-generated image of an upcoming luxury hotel from the local hospitality conglomerate Paradise Group, slated to open in Seoul by 2028. [PARADISE GROUP]

The Covid-19 pandemic was a "wake-up call" for the company, according to Choi.

With about 85 percent of its revenue coming from its foreigner-only casino business, the company was hit hard by Covid-19 in 2021. Room occupancy rates at its hotels reportedly plummeted as much as 5 percent. But Choi said that the group took the time to reorganize and update its internal systems and prepare for when the pandemic ends.

And the efforts seemingly paid off, as the company bounced back incredibly last year. It topped its pre-pandemic numbers with 1.041 trillion won ($749.2 million) in revenue and 188.1 billion won in profits.

The bulk of its guests are from Japan, according to Paradise, which said that the company leveraged its marketing resources to target the Japanese market for its post-Covid recovery. It hopes to see its positive financials carry through this year with the return of Chinese tourists, who have been slow to come back since the end of the pandemic.

Paradise Group executives answer questions from the press at Paradise City, Incheon, on Tuesday. [PARADISE GROUP]

Other upcoming projects for the company include a lounge at the Gimpo International Airport’s arrival gate, set to open by September, and a new brand campaign later this month.

Paradise said it is also enhancing the infrastructure of its hotels and casinos outside Incheon to match that of its most renowned property, Paradise City. Accordingly, the second floor of Paradise Casino Walkerhill in Gwangjin District, eastern Seoul, is currently under renewal and will reopen as a refurbished VIP space in September. Its four casinos are also set to "build alliances," share resources and the data of their collective 1.07 million users so that the group can offer better customer experiences and plan effective marketing strategies.

Paradise Group opened Korea's first casino in 1967 and officially established itself in 1972. It opened the first integrated resort in Northeast Asia, Paradise City, in 2017. Its stock began trading on the Kosdaq in 2002 and moved to the Kospi last week.

BY LEE JIAN [lee.jian@joongang.co.kr]