Shinsegae to Operate First Jeju-based Hotel

By Kang Seung-woo

The Kensington Jeju Hotel, one of tourists' favorite properties on the resort island, will close its doors in May.

However, it will be revived as a brand new hotel that will be operated by Shinsegae Chosun Hotel, which aims to place itself as one of the locally grown hospitality giants along with Hotel Shilla and Lotte Hotels and Resorts.

'Until the end of May, the hotel will be operated in the name of the Kensington hotel,' a Kensington official said. 'After that, Shinsegae will take over the business and the name is probably likely to be changed.

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In February 2018, E-Land Group sold the Kensington hotel and a nearby site allotted for building the Sangrok Hotel to Bamp;M Development, a subsidiary of SK Group's real estate developing unit SK Damp;D, for 128 billion won ($114 million) in a bid to improve its financial stability.

Even after selling the Kensington, it has still remained an operator of the five-star hotel, located in the Jungmun Tourist Complex in a southern part of the island.

However, the operation deal is scheduled to expire in June and Shinsegae Chosun Hotel will succeed the operation and management.

Upon the takeover, the property is expected to undergo a one-year renovation, which is likely to start in July.

According to a market report, SK Damp;D is set to invest more than 200 billion won ― 57.3 billion won for this year and 150 billion won for next year ― in remodeling the property.

'Nothing has been decided yet about the hotel's naming, concept and others,' a Shinsegae official said.

It is forecast that SK Damp;D will launch an extensive renovation of the Kensington, including improving its 221 rooms and changing the interior concept.

However, its rooftop pool and...