Surplus Turnaround After 4 Years... "Kim Dong-seon's Strategy Worked"

Hanwha Hotels & Resorts Posts Over 10 Billion KRW Operating Profit Increase
First Positive Recovery Since 2018
"Digital and Pet Rooms Effective in Targeting Younger Customers"

Kim Dong-seon, Executive Vice President and Head of Strategy at Hanwha Hotels & Resorts and the third son of Kim Seung-yeon, Chairman of Hanwha Group, is achieving remarkable results in the hotel and resort business. By introducing technologies such as digital solutions and robotics to enhance the convenience of room usage, and establishing infrastructure that allows guests to stay with their pets, he has received positive responses from the MZ generation (Millennials + Generation Z). The business, which had been hit hard and accumulated operating losses due to COVID-19, has finally succeeded in rebounding under his leadership.

Kim Dong-seon, Executive Vice President and Head of Strategy Division at Hanwha Hotels & Resorts [Photo by Hanwha Hotels & Resorts]

Hanwha Hotels & Resorts announced on the 9th that its operating profit on a consolidated basis exceeded 10 billion KRW last year, marking a return to profitability for the first time in four years since 16.2 billion KRW in 2018. Sales reached 605 billion KRW (excluding the estate division), recovering to the 648.6 billion KRW level before the COVID-19 outbreak in 2019. The room occupancy rate also increased by 15 percentage points compared to the previous year.

Hanwha Hotels & Resorts cited the digital services and pet room operations, which were key customer attraction strategies led by Executive Vice President Kim, as factors behind the improved performance. A representative example is the online membership sales service launched by the company in May last year. This policy change allowed memberships, which were previously purchased through sales representatives, to be bought more affordably online. A Hanwha Hotels & Resorts official explained, "We introduced online memberships targeting younger customers who are familiar with digital channels," adding, "More than half of the membership buyers are under their 40s, and the number of young customers has noticeably increased since the launch of online membership sales."

Executive Vice President Kim also introduced robot services at major business sites starting in July last year to expand online and digital services familiar to younger customers. The company provided a 'digital concierge service' that allows room service orders via tablet PCs and an 'application mobile key' feature. Pet rooms, where guests can stay with their pets, were first introduced in October last year at Hanwha Resort Pyeongchang. The company reported that the number of users of these rooms has more than doubled since their opening. Additional pet rooms are scheduled to open at the Jeju site by the end of this month.

Cultural events aimed at attracting MZ generation customers are also a focus of Executive Vice President Kim's efforts. In August this year, the 'Waterbomb' event, where attendees can enjoy water play and performances, will be held at Seorak Sorano in Gangwon Province. Now in its seventh year, this event has established itself as a leading summer festival in Korea, attracting tens of thousands of visitors annually. A Hanwha Hotels & Resorts official stated, "We plan to target not only family customers but also focus intensively on younger generations," adding, "We will continue to maintain a profitable trend through ongoing changes."

This content was produced with the assistance of AI translation services.