Expectations for 'Hillstate Haeundae Central' Nearing Completion in the Second Half of the Year

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The premium residence (serviced accommodation) 'Hillstate Haeundae Central,' located in U-dong, Haeundae-gu, Busan Metropolitan City, is attracting much attention as it approaches its scheduled completion in September.

Hillstate Haeundae Central, introduced in U-dong, Haeundae-gu, Busan, is a premium residence (serviced accommodation) product consisting of a total of 238 units ranging from 42 to 149㎡ in exclusive area, spanning from 8 basement floors to 41 above-ground floors. It offers a variety of layouts from penthouse types to small units. Being situated in the central location of Haeundae, it has the advantage of close proximity to various infrastructures that Haeundae proudly offers.

The residence interior is equipped with various support facilities. On the first basement floor, there are a theater room, private spa, and screen golf facilities. On the third floor above ground, there is a fitness center, members lounge, and private business center. Additionally, the top floor will feature premium amenities such as a rooftop garden, rooftop pool, sky lounge bar, and rooftop landscaping (garden).

A real estate official from Haeundae-gu stated, "Hillstate Haeundae Central attracted high interest from the time of sale as it is a collaboration between 'Sono International (SONO),' the number one resort operator in Korea, the top-tier brand 'Hillstate,' and Busan Haeundae, Korea’s representative tourist destination," adding, "As the completion in the second half of the year becomes more visible, expectations are rising even higher."

Hillstate Haeundae Central is evaluated to have high value in terms of operational reliability and premium service provision through entrusted operation by Sono International.

A representative of Hillstate Haeundae Central said, “The project owner plans to manage the building and accommodation facilities collectively through an SPC (Special Purpose Company) for operational purposes, and the reservation and room operation of the residence accommodation facilities will be entrusted to Sono International (SONO).”

Sono International (SONO) is a leading company in the domestic hotel and resort industry. In July 2024, it successfully opened the urban-style hotel ‘Sono Moon Haeundae’ on Haeundae Beach Road in Busan, and in June this year, it is set to open ‘Sol Beach Namhae,’ a top-tier resort in Korea with an investment scale of 430 billion KRW.

An industry insider said, “The quality of service and room operation performance (Occ, ADR, RevPAR) of residences and accommodation facilities vary depending on the capability of the entrusted operator. Therefore, professional operation by a large entrusted operator with experience, expertise, and transparency is essential,” adding, “Expectations for Hillstate Haeundae Central, entrusted to Sono International (SONO), are growing even more.”

Since Busan Haeundae, where Hillstate Haeundae Central is supplied, is recognized as a global tourist destination attracting visitors from both domestic and overseas, the financial and investment industries evaluate that both growth potential and stability are high for operating premium residences (serviced accommodations) that can accommodate domestic MZ generation staycation demand and overseas travelers in groups of 3 to 4.

According to a survey by travel agency Skyscanner, Busan ranked first among popular travel destinations searched by Korean travelers during the Lunar New Year holiday in January, and the occupancy rates of major hotels and resorts in Haeundae reached full capacity.

The average daily rate (ADR) of hotels in Haeundae is also continuously rising. According to data from the Korea Hotel Association, the ADR of 5-star hotels located in Haeundae, Busan, has reached an all-time high. The peak in Haeundae hotel ADR is attributed to demand from events such as the Busan International Film Festival (BIFF), fireworks festivals, G-Star (G-Star International Game Exhibition), as well as an increase in foreign tourists visiting Korea and a preference for premium domestic accommodations.

A loan officer in charge of serviced accommodation loans at a domestic financial institution said, "The influx of tourists and hotel guests to Busan Haeundae not only ensures operational stability in the future but also alleviates concerns related to balance payment loans for buyers," adding, "In fact, serviced accommodations in representative domestic coastal tourist destinations such as Busan, Gangneung, and Sokcho, which are either occupied or about to be, have balance payment loans set at 60% to 70% of the appraised or supply price, making balance payment loans smooth upon completion."

A representative of Hillstate Haeundae Central stated, "Currently, ahead of the scheduled completion and opening in the second half of this year, Sono International (SONO) and the project owner (entrusted operation SPC) are preparing detailed accommodation operation plans including recruitment of accommodation operation staff, guidance on furniture, fixtures, and equipment (FF&E) package details (items, quantities, unit prices), and opening preparations," adding, "Key matters among the decided residence operation plans will be communicated to all buyers (accommodation facility trustees) of Hillstate Haeundae Central in March."

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