Targeting the Premium Resort Market: Acquired for 30 Billion KRW
"Paraspra Seoul" to Be Relaunched Under the "ANTO" Brand
Vice President Kim Dongseon Leads Business Portfolio Expansion
Hanwha Hotels & Resorts has acquired the luxury resort "Paraspra Seoul" in Ui-dong, northern Seoul, and is set to target the premium resort market.
On August 13, Hanwha Hotels & Resorts announced that it had acquired 100% of the shares of Jeongsang Bukhan Mountain Resort, the corporation that owns Paraspra Seoul, for a total of 30 billion KRW, including a paid-in capital increase of 29.5 billion KRW. As a result, Jeongsang Bukhan Mountain Resort has been officially incorporated as a subsidiary of Hanwha Hotels & Resorts.
Previously, Paraspra Seoul was put up for sale after Samjeong Enterprise, the parent company of Jeongsang Bukhan Mountain Resort, entered corporate rehabilitation proceedings. Hanwha Hotels & Resorts acquired the company on the condition of taking over 390 billion KRW in debt from Jeongsang Bukhan Mountain Resort.
The market value of Paraspra Seoul is estimated at 600 billion KRW, which is significantly higher than the acquisition price of 30 billion KRW. The company stated, "Although we are inheriting existing debt, the immediate outlay is minimal," and added, "Even when factoring in the debt, the acquisition price is about 200 billion KRW lower than the market value, so we have ultimately achieved a noteworthy financial result."
The acquisition of Paraspra Seoul is expected to be reflected in the third-quarter earnings. A Hanwha Hotels & Resorts representative said, "With the successful completion of the contract, we expect third-quarter net profit to increase by around 200 billion KRW, and total assets to rise significantly to approximately 5.4 trillion KRW," adding, "We also plan to substantially reduce existing borrowings through negotiations with financial institutions."
With this acquisition, Hanwha Hotels & Resorts plans to expand its business portfolio into the premium resort market. To this end, Paraspra Seoul will be newly launched under the brand "ANTO (安土)." The new brand name ANTO combines the Chinese characters for "comfort" (安) and "earth" (土), conveying the meaning of "a comfortable life on that land."
The decision to launch a new brand reflects the growing customer demand for top-tier resorts. Hanwha Hotels & Resorts already owns hotels and resorts across the country. With the acquisition of Paraspra Seoul, the company has established a luxury leisure infrastructure in the heart of Seoul. A Hanwha Hotels & Resorts representative said, "ANTO is a differentiated, top-class relaxation space that offers both excellent urban accessibility and a true experience of nature," adding, "As the number of customers seeking premium resorts has noticeably increased recently, we expect a diverse range of guests to visit ANTO."
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