Paradise Group, a leading South Korean hospitality and leisure company, is set to build a premium flagship hotel in Jangchung-dong, central Seoul, a project that will surpass the renowned Shilla Hotel in total floor area. The planned construction cost is also significantly higher than the industry average for five-star hotels, signaling an aggressive push into the ultra-luxury hospitality market.

According to Seoul Jung-gu Office and industry sources on May 15, Paradise Group signed a construction contract last month with DL E&C to build the “Jangchung-dong Flagship Hotel” on a 13,950 square-meter plot at 186-210, Jangchung-dong 2-ga, Jung-gu. The hotel will span from five basement levels to 18 stories above ground, with a total floor area of 69,970 square meters.

While the hotel’s gross floor area exceeds that of The Shilla Seoul (67,122㎡), it will house only 189 guest rooms—roughly 40% of Shilla’s 464 rooms. This reflects a deliberate focus on oversized, high-end suites designed for an exclusive clientele.

In March, Paradise disclosed a KRW 575 billion (approx. USD 420 million) investment plan for the project, describing it as an “Uber Luxury Hotel” that goes beyond conventional five-star standards. The group emphasized its goal to offer “bespoke services and top-tier facilities for a very limited number of guests,” underscoring a clear strategy of differentiation.

The construction cost further highlights this upscale ambition. DL E&C reported a total construction contract value of KRW 389.99 billion (approx. USD 285 million), which is approximately 18% higher than the average construction cost for five-star hotels in South Korea.

“This cost level reflects not just architectural factors, but also premium-grade materials and finishes across all sectors, including civil engineering and landscaping,” said one industry insider. “It’s a strong indicator of Paradise’s commitment to ultra-luxury positioning.”

Paradise Group has already begun foundation work and aims to open the hotel in the second half of 2028.

However, the hotel will face stiff competition in the area, which already hosts three major five-star hotels—The Shilla Seoul, Ambassador Seoul (Pullman), and Banyan Tree Club & Spa Seoul—all within walking distance. A fierce battle for high-end clientele is expected.

This article was originally published by CoreBeat on May 15, 2025.