Foreign Property News | Posted by Hnin Ei Khin
PAG has teamed up with Seoul-based Inmark Asset Management to acquire the landmark Grand Hyatt Seoul hotel, as the city’s hospitality sector continues to draw interest from foreign investors.
The Hong Kong-based private equity firm, together with its co-investors, is reported to have paid Hyatt Hotels Corporation around 560 billion Korean won ($480 million) for the 615-room hotel, according to market sources cited by The Korea Herald.
The 615-room hotel will continue to be operated under the Grand Hyatt brand under a long-term management agreement, according to a statement by JLL, which acted as the sole advisor on the sale. PAG representatives had not responded to inquiries from Mingtiandi regarding the transaction before the time of publication.
“This unprecedented opportunity received notable interest from both domestic and international investors, driven by the unique nature of the property, strong market fundamentals and the excellent outlook for Seoul’s hospitality market,” said Corey Hamabata, senior vice president of JLL’s Hotels & Hospitality Group.
The acquisition comes as some $1.1 billion in Seoul hotels have changed hands so far this year, according to JLL, which represents more than three times the annual average volume from 2012 to 2018.
Located in Hannam-dong, one of the wealthiest neighbourhoods in the South Korean capital and popular with heads of state, the iconic hotel occupies a freehold site of more than 73,000 square metres (785,765 square feet).
Renovations of the 1978-vintage property were completed in May, addi ng a further 14 rooms to the venue, which also boasts 12 restaurants and bars, a spa, and 19 meeting spaces.
The hotel’s presidential suite – which according to hotel publicity was a favourite of Princess Diana and has views of the Han River and Mount Namsan – measures 337 square metres, while the ambassador suite is 200 square metres in size.
The move by PAG comes four months after the investment firm started raising capital for a new $2 billion fund – SCREP VII – that aims to invest in high-yielding real estate projects across Asia.
Ref: Property Report
