New Luxury Hotels in Hallyuworld

(2011.06.09)

Gyeonggi Province and Inter-Burgo Group sign contract to build 380-room hotel

Construction scheduled for completion by 2014 – second contract since Daemyung Leisure Indusrty Co., Ltd. ‘s 660-room hotel

– Gyeonggi Province inked a contract to build a luxury hotel in Hallyuworld with Inter-Burgo on June 9th. Governor Kim Moon-soo and Kwon Yung-ho, President of Inter-Burgo Group, posed for a photo after the signing. (GNews Plus)

A 380-room luxury tourist hotel will be built in Hallyuworld 

Gyeonggi Province has agreed to build a luxury hotel consisting of 380 suites in Hallyuworld with Inter-Burgo Group. Governor Kim Moon-soo, President Kwon Yung-ho, and Gyeonggi Urban Innovation Corporation headquarters director Kim Jun-ho, and related officials gathered to celebrate the signing of the contract.

According to the agreement, Inter-Burgo Group will invest KRW 13.1 billion in lot purchase and KRW 60 billion in construction fees. The hotel will be built on a 10,458 m² site and consist of twenty stories plus two underground stories, and have 380 serviced rooms. It is scheduled for completion in 2014.

The Gyeonggi Provincial Government is planning to invest twenty percent of the given loan upon request. The local government has also prepared policies that will favor the luxury hotel, including tax reductions among other benefits, so as to enhance its competitiveness.

Governor Kim said during his celebration speech that, “I hope more high-end lodges such as Hotel Inter-Burgo come to Hallyuworld. I assure you they will have the Gyeonggi Provincial Government’s full support.”

Kwon Yung-ho, President of Inter-Burgo said, “Construction work will start next year as soon as we are backed with the right infrastructure. Our analysis shows that the biggest obstacle is the surroundings. Once the hotel is complete, we will be the most respected and sought after company in the region.”

The government signed a yielding contract with Inter-Burgo February 2010, but the signing of the actual contract was postponed due to pending beneficial policies. When they came through in April 2011, the hotel construction project gained much needed momentum.

Inter-Burgo Group’s 380-room hotel will be a new addition to a line of accommodation facilities to be built on the 24,186m² lot, comprising some 960 rooms. In June 2008, Daemyung Leisure Industry started building a hotel with 660 rooms on the lot. Three hundred and seventy of the rooms will be ready by June 2012.

There is still an empty 73,946m² lot with the capacity for 3,050 rooms. The government will host an investment seminar on the 15th of June to attract more companies at the Kintex. The opinions of investor and potential guests collected during the event will be reflected at the end of 2010’s public offering.

The government has also been making enormous efforts to attract large high-end hotels to Hallyuworld. Unfortunately the tourist hotel business is slow to break even with investment, and profits do not do justice to the amount of investment required. Furthermore, it is generally difficult to attract private investment and expand facilities because of tight regulations. 

To resolve these issues the local government has been working on a special solution with the Ministry of Culture, Sports and Tourism and the Ministry of Land, Transport and Maritime Affairs. In April of 2010 the Ministry of Culture, Sports and Tourism came up with an agreement to expand the number of lodging facilities within Hallyuworld.

– According to the agreement, Inter-Burgo Group will start constructing the hotel on a 1,458m² lot worth KRW 13.1 billion. Actual construction will cost them another KRW 60 billion, bringing the overall cost to KRW 73.1 billion. The hotel will consist of two underground stories and 20 stories aboveground, and will have 380 guest rooms. See the image of the hotel below. (News Plus)

GNews Plus News | Han Sang-hui gnewshan@gmail.com

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