A consortium led by Hong Kong-based investment
firm PAG and Seoul-based Inmark Asset Management has acquired the
Grand Hyatt Seoul.
The hotel was sold subject to a
long-term management agreement with Hyatt and will continue to
operate under the Grand Hyatt brand. Terms of the sale were not
JLL's Hotels & Hospitality Group
acted as sole and exclusive advisor to the seller, an affiliate of
Hyatt Hotels Corporation.
Occupying over 73,000 sqm of freehold land in
the heart of Hannam-dong, one of the most affluent neighbourhoods
in Seoul, the 615-room Grand Hyatt Seoul has a
long-standing reputation as one of the most luxurious hotels in
the city. The hotel has been recently elevated by a comprehensive
renovation including an extensive transformation of all guestrooms
and suites as well as a full renovation of its signature Grand
“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, JLL’s Hotels & Hospitality Group.
According to JLL’s latest Global Capital Flows
report, Seoul was the most actively traded city in Asia Pacific in terms
of commercial real estate transaction volume as of Q3 2019. Transaction volumes in the hotel sector have mirrored this trend
of increasing activity. According to the real estate firm’s data,
hotels valued at approximately US$1.1 billion 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 RevPAR in 2019. 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,” added Mr Hamabata.
Beyond Seoul, South Korea is emerging as a major hotel
transaction market in Asia Pacific. JLL predicts that the country
will be the third or fourth most active transaction market in
2019, with an estimated volume of US$1.3 billion. An increase in
the number of hotels built over the past decade means more
properties are now eligible for sale, creating more opportunities
for investors to enter the market.
Asia CEO, JLL Hotels & Hospitality, said, “With Asia Pacific’s
hotel transaction volumes expected to increase up to 30 per cent
over last year to surpass US$11 billion in 2019, we’re confident
that the region’s investment momentum will continue into next