PAG and Inmark acquire Grand Hyatt Seoul
JLL Hotels and Hospitality advised on iconic hotel transaction
SINGAPORE, 20 December 2019 – A consortium led by Hong Kong-based investment firm PAG and Seoul-based Inmark Asset Management has acquired the Grand Hyatt Seoul in a transaction where JLL's Hotels & Hospitality Group acted as sole and exclusive advisor to the seller, an affiliate of Hyatt Hotels Corporation.
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 disclosed.
Occupying over 73,000 sqm of freehold land in the heart of Hannam-dong, one of the most affluent neighbourhoods in Seoul, the iconic 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 Ballroom.
“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,” says 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 revenue per available room (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,” adds 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.
Mike Batchelor, Asia CEO, JLL Hotels & Hospitality concludes: “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 year.”
The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.