Bluecove buys Grand Hyatt Seoul for over $565 million

South Korean real estate firm Bluecove Investment has signed an agreement to acquire five-star hotel Grand Hyatt Seoul for more than 700 billion won ($565.4 million), according to investment banking sources on Jan. 31.

The seller is a consortium led by Hong Kong-based investment firm PAG and Seoul-based Inmark Asset Management, which holds a 100% stake in the hotel. It bought the luxury hotel in December 2019 for around 600 billion won. 

Inmark’s key stakeholders are affiliates of Korean mid-sized conglomerate KH Group, which runs businesses in electronics, lighting, construction and other sectors.

Sitting on Mt. Namsan, the hotel has been one of the most luxurious hotels in Seoul since it opened in 1978. It operates 615 guest rooms and occupies more than 73,000 square meters of freehold land. US President Joe Biden and former presidents including Donald Trump and Barack Obama have stayed in the hotel during their visits to Korea.

Bluecove is poised to renovate the guest rooms, restaurants and other facilities to raise the property’s value. US hospitality company Hyatt Hotels Corp. will continue to operate the Seoul-based hotel under a long-term contract.

The real estate investment firm, focusing on value-added strategies, has renovated some upscale hotels in Korea such as Grand Josun Busan, which was remodeled in 2020, and Parnas Hotel Jeju, a resort hotel renovated last July.

Korea’s leading handbag maker JS Corp. joined investors in the acquisition of the hotel. JS, listed on the main bourse Kospi, manufactures and supplies bags to global fashion brands including Burberry, Michael Kors, Coach, Kate Spade and Guess.

The handbag maker also announced on Jan. 31 it will buy a 10% stake in Bluecove for 3.6 billion won through a rights offering. The acquisition of the equity will be completed by Feb. 14, the company stated.

Write to Ji-Eun Ha at hazzys@hankyung.com

Jihyun Kim edited this article.