Contrary to expectations of a tepid bidding process due to high interest rates, the deal drew strong interest from foreign investment firms, according to reports. (Image courtesy of JLL)
SEOUL, Jun. 5 (Korea Bizwire) – The Conrad Seoul hotel in the Yeouido financial district has been sold for over 400 billion won, marking the largest single hotel transaction in South Korea this year, according to JLL, the global real estate services firm that advised on the deal.
The sale represents the second-largest hotel transaction in the Asia-Pacific region so far in 2023, JLL said.
While JLL did not disclose the buyer or the exact sale price, the hotel is believed to have been acquired by the Singapore-based ARA Korea Asset Management for over 400 billion won.
In March, ARA Korea Asset Management emerged as the preferred bidder after proposing a price in the 400 billion won range.
The Conrad Seoul, a 434-room luxury hotel, was previously owned by Brookfield Asset Management as part of the Yeouido International Finance Center (IFC) complex. Brookfield opted to carve out and sell just the hotel component in this transaction.
Contrary to expectations of a tepid bidding process due to high interest rates, the deal drew strong interest from foreign investment firms, according to reports.
“The successful transaction of Conrad Seoul reaffirms the continued interest and confidence in Korea’s hotel industry,” said Nihat Ercan, CEO of JLL’s Hotels & Hospitality Group for Asia Pacific. “We take great pride in successfully introducing and facilitating investment into a Korean hotel asset by globally renowned investors.”
Previously, JLL handled the sale of the Mercure Ambassador Hongdae hotel in 2021 and the Crown Hotel in Itaewon in 2022.
Ashley Song (ashley@koreabizwire.com)
