Literacy > Lodging Glossary > Family Hotel

Family Hotel

A family hotel refers to a lodging establishment registering and operating a family hotel property as a family hotel business pursuant to the ‘Tourism Promotion Act’. It targets long-term stay guests, which is a common with timeshares and residential lodgings. However, unlike them, family hotels cannot be sold fractional, resulting in a relatively higher burden of raising development and operational funds, while quality control is easier.
Customary Definition
Family hotels refer to lodging establishments equipped with facilities for long-term stays and typically charges weekly rates instead of daily rates. However, unlike timeshares or residential lodgings, which share this characteristic, family hotels cannot be sold fractional, making the burden of raising development and operational funds relatively higher, while quality control is easier.
Source: STR Glossary
Statutory Definition
Family hotel properties refer to buildings registered and operated as 'family hotel businesses' pursuant to pursuant to the Enforcement Decree of Building Act, and ‘family hotel business’ means a business that provides facilities and cooking tools suitable for family tourists' lodging, or facilities suitable for dining, exercise, recreation, or training related to stay of tourists pursuant to Article 2 of the Enforcement Decree of Tourism Promotion Act.
Lobin Commentary

The family hotel was legislated in 1986 under the ‘Tourism Business Act,’ the predecessor of the ‘Tourism Promotion Act,’ as a type of lodging establishment suitable for tourists traveling with their families. At that time, the ‘Enforcement Regulation of Tourism Business Act ‘ Annex 6-4 defined the facility standards for family hotels as follows:

  1. Guestrooms must be equipped with modest Korean or Western-style facilities suitable for family use.
  2. Entrance must secure an area of at least 0.5 square meters per person for the total capacity.
  3. Amenities
    1. Must install a public restaurant suitable for family use.
    2. Must install communal cooking facilities on each floor, allowing at least 30% of the guests to cook individually.
    3. Must have a grocery store or a convenience store.
    4. Must have at least one indoor sports facility and at least two outdoor sports facilities.
  4. Must be a building of three floors or less that can harmonize with the surrounding environment, if located in a tourist district, national or provincial park, or other scenic area with beautiful natural scenery.

In 1999, the registration standards for tourism businesses were elevated from the Enforcement Regulation to the Enforcement Decree of the Tourism Promotion Act, and overall regulations were simplified. The current ‘Enforcement Decree of Tourism Promotion Act’ Annex 1 defines the registration standards for family hotels as follows:

  1. Must have cooking facilities installed in each guestroom or a communal kitchen on each floor suitable for family tourists.
  2. Must have at least 30 guestrooms equipped with bathrooms or shower facilities.
  3. The area of each guestroom must be at least 19 square meters.
  4. Must have a system in place to provide services to foreigners.
  5. Must secure ownership or usage rights of the land and building. However, ownership must be secured if recruiting members.

The family hotel is a type of lodgingestablishment that is similar to timeshares under the Tourism Promotion Act and residential lodgings under the Public Health Control Act, as they are required to have cooking facilities according to Annex 1 of the Enforcement Decree of Building Act. As such, family hotels, timeshares, and residential lodgings may be in direct competition.

The difference is that family hotels cannot be sold fractional, whereas timeshares can according to Article 24 of the Enforcement Decree of Tourism Promotion Act, and residential lodgings can as well according to the Act on Sale of Building Units. Additionally, family hotels and timeshares can recruit members according to Article 24 of the Enforcement Decree of Tourism Promotion Act, while residential lodgings cannot. Therefore, the burden of raising funds necessary for the development of family hotels is solely borne by a single owner, making it relatively burdensome to secure development and operating funds. However, it makes quality control easier.

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Data Source

  • GDP: GDP, Current $US (World Bank Open Data)
  • Establishments: Compendium of Tourism Statistics (UNWTO), Lodging Business Ledger (MOIS)
  • Rooms: Compendium of Tourism Statistics (UNWTO), Lodging Business Ledger (MOIS)
  • Lodging GDP: Value Added by Industry (BEA), National Accounts (Cabinet Office), GDP of Indonesia (BPS), GDP & GNI by Sector (BOK), Economic Census (KOSIS)
  • Period: 2017-2021

※ In Korea, general & residential accommodations are included while rural & urban minbaks are excluded. Comparable countries are selected based upon availability of lodging GDP statistics for all types of accommodations.

Data Source

  • Population: Population, Total (World Bank Open Data)
  • GDP: GDP, Current $US (World Bank Open Data)
  • Rooms: Compendium of Tourism Statistics (UNWTO), Lodging Business Ledger (MOIS)
  • Lodging GDP: Value Added by Industry (BEA), National Accounts (Cabinet Office), GDP of Indonesia (BPS), GDP & GNI by Sector (BOK), Economic Census (KOSIS)
  • Period: 2017-2021

※ In Korea, general & residential accommodations are included while rural & urban minbaks are excluded. Comparable countries are selected based upon availability of lodging GDP statistics for all types of accommodations.

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Data Source

  • Korea: Lodging Business Ledger (MOIS), Tourist Accommodation Ledger (MCST)
  • USA: Census Database (STR)
  • Period: As at the end of 2021

※ General & residential accommodations other than rural and urban minbaks asre included for Korea. Life cycle was calculated as of December 31, 2021 or actual closure date. If there exists a discrepancy between data sources for an establishment, the discrepancy was settled through an algorithm before use.

Data Source

  • Korea: Lodging Business Ledger (MOIS), Tourist Accommodation Ledger (MCST), Economic Census (KOSIS), Hotel Operating Statistics (KHA), DART (FSS), Trends Report (STR)
  • USA: Compendium of Tourism Statistics (UNWTO), Census Database (STR), Trends Report (STR)
  • Period: 2005-2021

※ General & residential accommodations other than rural and urban minbaks asre included for Korea. Visibility was calculated as the number of establishments for which revenue data is available divided by the total number of establishments. If there exists a discrepancy between data sources for an establishment, the discrepancy was settled through an algorithm before use.

Data Source

  • Guests(Korea): Domestic Traveler Survey (MCST), International Traveler Survey (MCST), Hotel Operating Statistics (KHA)
  • Rooms(Korea): Lodging Business Ledger (MOIS), Tourist Accommodation Ledger (MCST)
  • Guests(USA): Compendium of Tourism Statistics (UNWTO), Trends Report (STR)
  • Rooms(USA): Compendium of Tourism Statistics (UNWTO), Census Database (STR)
  • Period: 2005-2020

※ General & residential accommodations other than rural and urban minbaks asre included for Korea. If there exists a discrepancy between data sources for an establishment, the discrepancy was settled through an algorithm before use.