[Edaily Marketin, Reporter YunJi Kim ] A building named “Positive Hotel” near Dosan Park in Seoul. At first glance, it might easily be mistaken for a hotel, but it is not an accommodation facility. Instead of guest rooms, the venue sells smoothies, Mediterranean-style meals, and health supplements such as olive oil capsules, while yoga and meditation programs are held on the upper floors. It is structured to provide an integrated ecosystem that encompasses eating, exercising, and resting.

Edaily met with Jeong Hyung-rok, CEO of Positive Hotel, which is currently conducting a follow-up investment round of the B-Prime type. Founded in 2017, Positive Hotel is a wellness brand that operates wellness functional foods, yoga and meditation programs, and offline-based communities in Dosan and Seolleung. Recognized for its growth potential as a premium wellness consumer goods brand, the company secured 6.5 billion won in investment in 2021 from StoneBridge Ventures and Partners Investment, among others. Last year, building on sales growth driven by its online store and the success of its offline-based membership program, it also closed a follow-up funding round worth 6 billion won, led by a U.S. venture capital firm with participation from domestic VCs.

Experience Over Retail, Brand Over Franchise… Positive Hotel’s Growth Strategy

After graduating from Yonsei University’s School of Business Administration, CEO Jeong Hyung-rok worked in strategic planning at Samsung Electronics. He later served as an investment analyst at the venture capital firm LB Investment and as CEO of a beauty brand. This background allows him to view both numbers and branding from an investor’s perspective, even as a founder.

The word he repeatedly used when describing Positive Hotel was “connection.” This means that food, exercise, meditation, and content should not be consumed separately but should be interconnected within a single brand experience. CEO Jeong said, “Health isn’t built on a single element,” adding, “Eating well, staying active, and mentally recharging must go hand in hand.”

This philosophy is also reflected in the organization’s structure. The Positive Hotel team is composed of experts in various fields, including creative, space, platform, and global operations. Experts with over 10 years of experience in their respective industries are involved in product and program areas such as yoga, mental wellness, and food. The goal is to establish a structure that designs products, spaces, and programs together, rather than simply planning and selling health foods. Moving forward, the company plans to expand beyond food into lifestyle categories such as apparel and beauty.

CEO Jeong’s caution against “distribution disguised as branding” stems from the same perspective. He believes that simply increasing product exposure and expanding sales channels is insufficient to create the brand experience that Positive Hotel strives for. “Revenue and profit are natural outcomes that follow once a brand is established,” he said. “What is even more important—and more difficult to achieve—is the brand’s identity, narrative, and aesthetic.”

Although Positive Hotel has received numerous proposals to enter major online and offline retail channels, it has intentionally delayed full-scale channel expansion. Rather than rapidly growing sales through large retail networks, the company has chosen to directly manage customer touchpoints through its own online store (D2C). This approach allows the brand to maintain full control over the messages it conveys and the customer experience it delivers. Currently, the company has proven its business viability by recording annual sales of over 10 billion won based on its D2C model.

Positive Hotel Awaits Follow-On Investment… Begins Full-Scale Development of Wellness Ecosystem With follow-on investment on the horizon,

Positive Hotel is taking a cautious approach to expansion through opening numerous stores or broadening distribution channels. The company believes that while entering large retail networks could rapidly increase sales, it could also undermine the brand image and pricing policies it has carefully built. CEO Jeong’s warning against “distribution disguised as branding” stems from this same perspective.

The company’s perspective on investment funds also differs somewhat from that of typical consumer goods startups. CEO Jeong said, “Rather than money to be burned on marketing, investment funds are more like cash reserves held to ensure the company’s long-term survival.” He explained that cash reserves are crucial because unexpected variables—such as exchange rates, raw material prices, logistics costs, and quality issues—often arise in the food business. “Companies with sufficient cash reserves have a different ability to respond to such variables compared to those without,” he said.

This approach aligns with the current sentiment in the venture capital market. While revenue growth rates were the primary evaluation criterion during periods of abundant liquidity, investors now also assess capital efficiency and profit-and-loss management capabilities. This is why Positive Hotel, while pursuing follow-on funding, does not intend to immediately pour the funds into advertising and promotions. Instead, the company’s strategy is to invest in building a foundation for sustainable growth, such as brand content and its own distribution platform.

CEO Jeong emphasized that this does not mean the company will halt its expansion. Positive Hotel is preparing to connect food, fitness, meditation, content, and corporate partnerships, centered around key urban hubs. The data analytics SaaS company acquired last year is also expected to be utilized in this process. The plan is to gain a more sophisticated understanding of product purchases, program participation, and membership activities to examine how customers engage with the brand.

Recent hiring efforts are also part of this strategy. Positive Hotel is expanding its brand beyond product sales into content and services by recruiting talent in the fields of creativity, content and media, healthcare, and global affairs. CEO Jeong stated, “We hope wellness will become an everyday habit rather than a special event,” adding, “Ultimately, our goal is to grow into a longevity brand that helps people enjoy a better life for longer.”