Conrad Seoul Hotel Sold for Over 400 Billion KRW... New Owner is Singapore-Based Asset Management Firm

Sale of ARA Asset Management for 400 Billion KRW
Original Owner Brookfield Asset Management Successfully Sells Hotel Separately

The Conrad Seoul Hotel in Yeouido, Seoul, has been sold to a Singapore-based asset management company.

Global real estate services firm JLL announced on the 5th that the sale contract for the Conrad Seoul Hotel has been signed. JLL was appointed as the transaction advisor for the Conrad Seoul by the hotel owner, Canada-based Brookfield Asset Management, and has been searching for a buyer.

The buyer is Singapore-based ARA Korea Asset Management, with the purchase price estimated to be in the 400 billion KRW range. This follows ARA Korea Asset Management being selected as the preferred negotiator in March after proposing a price in the low 400 billion KRW range.

Brookfield Asset Management had attempted a bulk sale in 2022 of the three buildings of the Yeouido International Finance Center (IFC), including the Conrad Seoul. Mirae Asset Management was selected as the preferred negotiator to purchase for 4.1 trillion KRW. However, the deal fell through due to the failure to obtain approval for establishing a REITs (Real Estate Investment Trust) to finance the acquisition.

Subsequently, Brookfield shifted its strategy to sell the Conrad Seoul separately. Despite expectations of low bidding due to an unfavorable funding market with high interest rates, it is reported that numerous foreign investment management firms, including ARA Asset Management, showed strong interest in acquiring the property.

JLL explained that this transaction is the largest single hotel deal concluded domestically this year and the second-largest hotel transaction in the Asia-Pacific region. The Conrad Seoul is a five-star hotel with 434 rooms.

Nihan Alkan, CEO of JLL Asia-Pacific Hotels & Hospitality Group, stated, "Through the transaction of the Conrad Seoul, we have reaffirmed continuous interest and confidence in the Korean hotel industry," adding, "We are very proud to have introduced Korean hotel assets to globally recognized investors and successfully attracted investment."

Previously, JLL handled the sale of the Mercure Ambassador Hongdae Hotel in 2021 and the sale of the Itaewon Crown Hotel in 2022.