Hong Kong-based investment firm PAG and Seoul-based Inmark Asset Management have purchased one of Seoul’s most luxurious hotels, Grand Hyatt Seoul, from a Hyatt affiliate.
The transaction includes a long-term management agreement with Hyatt and the hotel continue to operate under the Grand Hyatt brand, according to JLL, which represented the seller.
According to JLL’s data, hotels valued at approximately US$1.1bn have transacted in Seoul so far this year, more than three times the average annual volume seen from 2012 to 2018.
“Based on the current trajectory of trading performance, Seoul will be one of the fastest growing markets in Asia in terms of revenue per available room (RevPAR) in 2019,” said Corey Hamabata, senior vice president of JLL’s hotels and hospitality group.
“The hotel market outlook remains positive as a result of favourable supply and demand conditions, including healthy domestic demand, strong expected growth in international visitation and limited new supply.”
The deal was first reported in August, when sources have told Korean Investors that PAG was said to be the preferred buyer of the hotel and nearby residential land, which were worth about 500bn won (US$415m).
The vendor, Hyatt Hotels Corporation, reportedly signed a memorandum of understanding to sell the asset to PAG at the time, with a sale believed to be in the 500bn won range.
The seller began the sale process earlier this year after it completed the renovation of 615 rooms in the hotel, which is located on Mount Namsan in central Seoul.
PAG manages US$30bn in capital across private equity, real estate and other strategies.
This story has been updated from when it was first published on August 28, 2019.