South Korea’s 2024 hotel transaction volumes to breach 2023 levels

Find out which key transactions will contribute to this year’s strong performance.

Since the pandemic, the tourism industry recovery in South Korea has resulted in enhanced operational performance for hotels, prompting an increase in acquisition of hotel assets for continued operational purposes. 

According to a Savills report, Conrad Seoul is slated to be sold in the first half of the year for over KRW400.0 billion. Additionally, Taeyoung Group’s Take Hotel in Gwangmyeong is currently undergoing a sale process to Starlord IMC for approximately KRW100.0 billion. 

Here’s more from Savills:

The Solaria Hotel in Busan, despite previous challenges, is currently negotiating with a new high bid. There are other numerous assets for sale, including Shilla Stay Mapo, Shilla Stay Seodaemun, Best Western Jeju, and Mercure Ambassador Hongdae, which will contribute to 2024 transaction volume surpassing the total of 2023. 

Moreover, there is a notable trend of mid-sized hotel transactions aimed at co-living style accommodations or serviced residences, particularly among foreign investors. In Q4/2023, Capstone AMC, in collaboration with Homes Company, the co-living company, and ICG (Intermediate Capital Group), the UK-based global asset management firm, acquired Doksan SI Hotel (180 rooms) and Holiday Inn Express Suwon (249 rooms) for KRW25.7 billion and KRW28.0 billion, respectively. 

These properties were remodeled into co-living style accommodations named ‘Homes Stay G Valley Gasan’ and ‘Homes Stay Suwon’, which opened in April 2024. In Q1/2024, Weave Living, Hong Kong-based rental housing firm, together with KKR, purchased The State Sunyu Hotel in Yeongdeungpo-gu (146 rooms) for KRW47.4 billion under the joint venture, with plans to operate it as a serviced residence.