Hong Kong-based private equity firm PAG will acquire Grand Hyatt Seoul, according to sources Nov. 20.
The five-star hotel, which opened in 1978, is located in Yongsan District and has 615 rooms, with several food and beverage outlets.
Established in 2002, PAG is one of Asia’s leading investment firms that manages over $30 billion.
In May, Hyatt Group decided to sell the hotel and picked US company Jones Lang LaSalle to organize the sale. The PEF was picked as a preferred bidder in August and at the end of October, it signed a contract to acquire it.
According to the contract, the PEF will buy the 18-story hotel and 8,757 square meters of surrounding land.
Industry insiders estimate the deal to be worth around 560 billion won ($478.54 million).
According to sources, the Hong Kong-based PEF also talked with few local investors like Meritz Securities and Hana Financial to form a consortium, but the information about its partner has not been disclosed yet.
Even after selling the hotel, Hyatt Group said it will continue to manage the hotel.
By Song Seung-hyun (firstname.lastname@example.org)