The cost-effective hotel was bustling with tourists, until the COVID-19 pandemic changed the fate of the hotel market. The hotel owner’s initial plan to sell the property by 2021 was crushed by the decreased international travel during the pandemic, leading to three years of unsuccessful attempts to find a new owner. In the summer of 2022, the hotel suspended its business operations and planned to develop it into an office or office tower.
However, with the easing of pandemic restrictions and the subsequent surge in travel demand to South Korea, the hotel’s operations normalized, reigniting interest from institutional investors. Early this month, an estate investment firm purchased the hotel, with intentions to acquire a global hotel operator for reopening.
The recent revival of occupancy rates at major Seoul hotels is sparking investor interest in the hotel industry. According to an investment bank industry, local and foreign investors recently bid for the 434-room Conrad Seoul Hotel. Offering the highest bid of around 400 billion won, the asset management company ARA Korea was selected as the ultimate preferred bidder.
“The competition between investors was fierce because it was the first five-star hotel in Seoul in a long time, and the hotel has been maintaining a stable occupancy rate compared to other hotels,” an asset manager said.
