Skip to main content

[Yanolja Research Insights] Vol.6 Trends and Challenges in the Serviced Residence Market

The serviced residence (SR) market is evolving rapidly, driven by new consumer behaviors and stricter regulations. Here's a quick look at the key trends and challenges shaping this industry.


What Are Serviced Residences (SRs)?

Serviced Residences (SRs) combine features of both hotels and apartment-style living, offering facilities such as cooking and laundry. This makes them ideal for long-term stays. The demand for SRs has surged, driven by trends like remote work, digital nomadism, and longer stays post-pandemic.


Key Insights: SR Market Overview

  • 86,000 Rooms Nationwide: As of 2021, there were approximately 86,000 SR rooms across South Korea, reflecting significant growth.

  • Surge in Busan: Busan's SR market, especially in tourist-centric areas like Haeundae, has seen rapid growth, with high-end SRs offering premium services and ocean views.

  • Premium SR Growth: High-end SRs are expanding, attracting tourists and business travelers alike who seek longer stays with the comforts of home.


Can SRs Be Converted into Residential Spaces?

The government has pushed for converting SRs into residential officetels to address legal concerns. However, the process faces hurdles like zoning issues and regulatory restrictions. Despite a temporary grace period, the actual conversion rate has been slow.


What Lies Ahead for the SR Market?

  • Tourism Growth: SRs are poised to play a larger role in South Korea’s growing tourism sector, with increased demand expected.

  • Expansion of Premium Options: Premium SRs with luxury services are set to continue expanding, catering to high-demand tourists.

  • Conversion Challenges: The debate over converting SRs into residential facilities is likely to persist, with regulatory shifts still in progress.

What’s next for SRs? Will they remain as lodging facilities, or will they shift to residential spaces? The regulatory challenges and evolving market trends could shape the future in unexpected ways. Want to learn more? Dive into the full report for deeper insights.

Yanolja Research Insights Vol.6

Labels:
Location: Seoul, Korea

Comments

Post a Comment

Popular posts from this blog

📢Yanolja Research Giveaway🎉

📢Yanolja Research Giveaway🎉 We are Yanolja Research , Korea’s first private research institute dedicated to travel and tourism studies. We publish Insights (monthly) and the Quarterly Trends in Korea’s Lodging Industry , along with occasional Briefs and Research Reports . By following Yanolja Research on social media, you will be among the first to receive notice of new publications, as well as updates when summary posts or video features based on our reports are released. 📅 Event Period September 12, 2025 (Fri) – October 12, 2025 (Sun) KST 🏆 Winner Announcement Late October (winners will be notified individually) 📌 How to Join 1. Follow Yanolja Research across our social media channels  (Instagram, Facebook, LinkedIn, Threads, X, YouTube, Blogger). – The more channels you follow, the greater your chances of winning. 2. Post your quiz answer in the comments of the event post on each platform. 3. Complete the Google Form with the platforms you follow, your account ID, and the...
8 comments
Read more

[Yanolja Research Brief] Vol.5 Korea's Inbound and Outbound Tourism Performance in 2024

Korea’s Tourism Landscape in 2024: Key Highlights 2024 marked a dynamic year for Korea’s tourism industry, with both inbound and outbound travel showing strong signs of recovery. Explore the main trends shaping the sector and discover why now is a pivotal moment for Korea’s travel market. Inbound Tourism: Visitor Numbers Surge, Revenue Lags Visitor Recovery Nears Pre-Pandemic Levels Over 16.3 million foreign tourists visited Korea in 2024, reaching 93.5% of the 2019 record and rising 48.4% from the previous year. Asian travelers made up nearly 79% of all visitors, though full recovery from this region remains just out of reach. Diverse Growth Across Regions Arrivals from the Americas, Europe, Africa, and Oceania exceeded 2019 levels, while the Middle East saw a minor dip. Tourism Revenue Stagnates Despite the influx of visitors, tourism income reached only $16.45 billion-just 80% of the 2019 figure. Visitors are Flooding into Korea—But Where’s the Money? Outbound Travel: Koreans Travel...
Post a Comment
Read more

[Yanolja Research Q2 2025 Quarterly Trends in the Korea Lodging Industry] Luxury Hotels Down, Motels on the Rise?

Luxury Slips, Budget Stays Bounce Back According to Yanolja Research’s Q2 2025 Korea Lodging Industry Report, the domestic lodging market demonstrated a pronounced polarization. While the luxury segment recorded sharp declines , budget-friendly accommodations maintained resilience and even expanded their presence . So, what’s behind this contrast? Let’s take a closer look. Sharp Declines in Luxury Hotels and Resorts The luxury sector experienced significant contraction. In Q2 2025, five-star hotels reported a 23% decline in RevPAR (Revenue per Available Room) compared with Q2 2024, while resorts recorded a 19% drop. This downturn reflects two key dynamics: prolonged economic stagnation that has weakened consumer sentiment, and the resurgence of outbound travel , which has redirected demand away from domestic luxury accommodations. In other words, consumers who had previously spent on high-end domestic stays have shifted their spending overseas. Value Strikes Back: Motels and Pensions ...
Post a Comment
Read more