Four Seasons says 'no' to calls for reducing room rate

By Choi Sung-jin

The Four Seasons Hotel in Seoul, which opened in Gwanghwamun last October, is sticking to its high room rates, which are nearly double those of other luxury hotels, industry sources said.

Its deluxe room fetches 445,000 won, or $370 (for two people, exclusive of taxes), per night. The rate for a suite is twice that at 800,000-900,000 won, according to sources. The comparable room rates for similar hotels in Seoul -- Lotte, Shilla and Westin Chosun -- are 225,000 won, 280,000 won and 246,500 won, respectively.

The Four Seasons in Seoul was built by Mirae Asset Management through forming a real estate fund of 340 billion won, and is being run by its Canadian operators.

“Deluxe hotels in Seoul are charging rates relatively lower than their counterparts in major foreign cities,” said a hotelier. “Even considering this, the Four Seasons’ rates are exceptionally high.”

There is also the issue of fair competition. “It’s completely up to Mirae Asset and Four Seasons to decide their room rates,” another hotelier said. “Yet their policy can provide excuses for other hotels that are offering services of similar quality to raise their room charges.”

The newly-opened hotel appears set to stick to its current rates, however. “In view of the equity with other customers who have paid the fixed price, we are not planning any discounts for promotion,” said one Four Seasons executive. “And this principle applies not only to Korea but to all our hotels throughout the world.”