This study examines changes in the use and conversion of hotel sites in Seoul, focusing on the conditions under which hotel sites are converted and the implications of these changes for urban spatial structure. Hotels, traditionally regarded as touris...
This study examines changes in the use and conversion of hotel sites in Seoul, focusing on the conditions under which hotel sites are converted and the implications of these changes for urban spatial structure. Hotels, traditionally regarded as tourism facilities, are also large-scale assets located in core urban areas, and their use has increasingly been reconsidered in response to changes in tourism demand, urban functions, and market conditions. In particular, the rapid expansion of hotel supply in the mid-2010s, growing volatility in inbound tourism demand, and the external shock of the COVID-19 pandemic have accelerated the reassessment of hotel site utilization in Seoul.
This study analyzes tourist hotel sites that were in operation in Seoul as of 2017 and traces their utilization changes through 2025. A logistic regression analysis was conducted with permanent use conversion as the dependent variable. Explanatory variables include asset characteristics (site area, building age, presence of underground parking), market factors (official land price, number of nearby hotels), and locational attributes. In addition, in-depth case studies were conducted by selecting representative cases according to conversion type in order to complement the quantitative analysis.
The main findings of the study are as follows.
First, the conversion of hotel sites in Seoul was observed only in a limited portion of the total sample, indicating that use conversion is not a generalized phenomenon but occurs selectively under specific locational and asset-related conditions. This suggests that hotel site conversion is shaped by structural factors rather than short-term or universal trends.
Second, hotel site conversion was more likely to occur where development feasibility and economic conditions converged. Sites with underground parking facilities showed a significantly higher probability of conversion, while sites with relatively lower levels of official land prices were more frequently converted. These results indicate that conversion decisions are closely related to development feasibility and the relative opportunity costs of maintaining hotel operations versus alternative uses.
Third, hotel site conversions followed diverse pathways, including conversion to office buildings, residential facilities, and public rental housing. Even under similar external pressures, conversion outcomes varied depending on locational hierarchy, demand structure, asset characteristics, and policy intervention. Office conversions were more common in areas with strong and stable office demand, high-end residential developments were selected in locations with irreplaceable land value, and public-led housing conversions occurred where private market redevelopment was constrained.
Fourth, in some prime urban tourism districts, hotel functions were maintained or reinforced rather than replaced. These cases demonstrate that in locations where tourism demand is structurally concentrated, hotel use continues to be recognized as the highest and best use of the site, even after temporary operational disruptions. This highlights the resilience of hotel functions in top-tier urban tourism areas.
In conclusion, changes in the use of hotel sites in Seoul should be understood not as the result of a temporary crisis in the tourism industry, but as a structural process in which the highest and best use of urban assets is continuously reassessed within evolving urban and market conditions. By redefining hotel sites as strategic urban assets rather than fixed tourism facilities, this study provides empirical insights for future urban land-use planning and differentiated policy responses in high-density metropolitan areas.