Hyundai Construction Co-Partners to Acquire Le Meridien Hotel for 700 Billion KRW

Le M?ridien Seoul exterior / Source=Marriott website

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering & Construction has jointly acquired the Le Meridien Hotel located in Gangnam-gu, Seoul, for 700 billion KRW.

According to industry sources on the 21st, Hyundai Engineering & Construction, together with real estate development company Wells Advisors, jointly acquired the Le Meridien Hotel for approximately 700 billion KRW.

A Hyundai Engineering & Construction official stated, "The acquisition contract was signed on the 20th," adding, "Instead of operating the hotel, we plan to develop it in a profitable direction including residential and commercial facilities."

Previously, Jeonwon Industry, the major shareholder of Le Meridien Hotel, selected Samsung Securities as the sales lead manager and began searching for a new owner since April last year. This is largely attributed to the overall downturn in the hotel business due to the COVID-19 pandemic.

Hyundai Engineering & Construction is acquiring the hotel through equity investment jointly with Wells Advisors, and it is known that the investment review committee has already been completed.

The building originally opened as The Ritz-Carlton Seoul in 1995 but was remodeled with a large-scale renovation costing 110 billion KRW and rebranded as Le Meridien Hotel in September 2017. It has 7 basement floors and 17 above-ground floors, with a land area of 10,362㎡ (approximately 3,135 pyeong) and a total floor area of 60,566.1㎡ (approximately 18,321 pyeong).