Korea’s hotel market is attracting renewed foreign investment as inbound tourism recovers faster than room supply. Hotel transactions reached 1.1 trillion won ($800.6 million) in the first half of the year, up 71 percent from a year earlier, according to Cushman & Wakefield. Inbound travelers totaled 12.8 million in the first seven months, a 20 percent increase from the same period last year, according to the Korea Tourism Organization. Goldman Sachs, Blackstone and CapitaLand Investment are among investors acquiring or repositioning properties, particularly three- and four-star hotels that can be refurbished, rebranded or converted from other uses. Average daily rate (ADR), the average nightly price for an occupied room, rose sharply across Korea, with three-star hotels recording a 69 percent increase from 2020 to 127,331 won in 2024. The recovery has also changed owners’ exit plans, encouraged conversions of offices and retail space into hotels, and attracted luxury brands scheduled to open in Seoul through 2031. Analysts expect greater five-star supply to pressure ADR in the short term but potentially expand the investment market over time, while foreign investors remain focused mainly on Seoul’s established tourist districts.