1. GS R&L H1 2025: What Happened?

GS R&L reported revenue of KRW 206.62 billion (a 44.45% increase YoY), operating profit of KRW 26.78 billion (turning to profit), and net income of KRW 14.35 billion (turning to profit) in H1 2025. The recovery of Parnas Hotel and steady rental income fueled this growth. The turnaround in the hotel business and the increased operating profit of IC Hotel were particularly noteworthy. (Westin Hotel remodeling resulted in an operating loss of KRW 13.36 billion).

2. Why the Turnaround?

GS R&L’s return to profitability is attributed to the turnaround in the hotel business and the stable rental business. The increase in inbound tourists (14.6% YoY) positively impacted hotel performance. Rental income from Parnas Tower and Parnas Mall provided a stable revenue base.

3. What’s Next for GS R&L?

The reopening of the Westin Chosun Seoul is expected to provide further growth momentum. However, continued high interest rates and macroeconomic uncertainties remain risk factors. Managing the financial soundness of Parnas Hotel is also a key challenge.

4. What Should Investors Do?

GS R&L has shown a solid recovery in fundamentals and might be entering an attractive valuation range. However, investors should be mindful of potential financial burdens from sustained high interest rates and the volatility of the hotel business due to macroeconomic factors. A thorough review of the company’s financial status and market conditions is crucial before making investment decisions.