Hong Kong-based investment firm PAG is said to be the preferred buyer of the Grand Hyatt Seoul hotel and nearby residential land which are worth about 500bn won (US$415m), sources have told Korean Investors.
The vendor, Hyatt Hotels Corporation, reportedly signed a memorandum of understanding to sell the asset to PAG earlier this month. The sale price is 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.
The agreement is the latest deal led by overseas investors since the local tourism started to recover in early 2018.
In December last year, Singapore-listed Datapulse Technology agreed to acquire a 127-room hotel in central Seoul for S$42.7 (US$31m), while Singapore-listed Ascendas Hospitality Trust snapped up the Ibis Ambassador Seoul Insadong hotel in the South Korean capital for KRW77.5bn (US$69m).
The South Korean tourism market picked up in 2018, with the number of overseas tourists to Korea increasing 19% year-on-year to 12.4m visitors, according to Avison Young.
PAG manages US$30bn in capital across private equity, real estate and other strategies.