Hana Tour Co., South Korea's leading tour agency, opened its third business hotel in Seoul, aiming to create synergy with its travel, duty-free and entertainment businesses.

Tmark Grand Hotel is located in Myeongdong, the shopping mecca in downtown Seoul, and close to Namdaemun Market, the nation's largest traditional market. 

The 20-story building has 576 rooms plus a swimming pool, a fitness center and a VIP lounge.

The travel agency first opened two business hotels in central Seoul in 2012 and 2013, adding fleets of properties in Japan and China.

"The hotel business will maximize synergy with Hana Tour's travel, duty-free and entertainment businesses," Choi Jong-yoon, the chief of Tmark Hotel, said during a grand opening ceremony. "We will also expand overseas operation in collaboration with 33 overseas branches to improve the global competitiveness."

It is one of the latest mid-tier hotels that have opened in the city center this year to lure a growing number of individual and business travelers, fueling competition in the already crowded region.

Choi said the hotel will take advantage of the sales channels in 31 foreign countries, which already account for over 20 percent of bookings in the existing hotels.

"We will beef up the global inbound tourism model as it is the new growth driver in the tourism business," Choi said. "Hana Tour will open 10-12 more hotels by 2020 to have over 3,000 hotel rooms and also to expand Tmark hotels abroad."

Hana Tour has expanded its business beyond travel to the hotel, duty-free, and food and beverage businesses to grab a bigger chunk of the fast-rising market.

In February, the firm opened SM Duty Free store at its headquarters building in Insadong, an art and antique street in downtown Seoul.

The company is listed in the main KOSPI market and also went public on the London Stock Exchange in 2006. (Yonhap)