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Shilla Stay Dongtan |
[Alpha Biz= Reporter Kim Jisun] As the domestic hotel market continues to boom, Mirae Asset Global Investments has begun preparations for the sale of Shilla Stay Dongtan, aiming for a deal next year.
According to the investment banking (IB) industry on the 14th, Mirae Asset has recently started early consultations with real estate consulting firms and accounting firms ahead of the maturity of the Shilla Stay Dongtan fund, set for the first half of next year. The company is reportedly seeking advice on market conditions, potential buyers, and the expected sale price. Considering the current market, industry experts estimate that Mirae Asset could secure a price in the mid-100 billion won range for the property.
Mirae Asset acquired Shilla Stay Dongtan in November 2013 from Asia Asset Management for 99.5 billion won, with the National Pension Service (NPS) contributing approximately 60 billion won, while the remaining funds were provided by Mirae Asset Group and others. Mirae Asset initially attempted to sell the hotel in 2019 but withdrew it from the market due to the COVID-19 pandemic.
Located in Hwaseong, Gyeonggi Province, Shilla Stay Dongtan is the first hotel of Hotel Shilla's business hotel brand, Shilla Stay. The hotel is a 3-star property with two basement levels, 29 floors above ground, a total floor area of 24,408 square meters, and 286 rooms. It is located near major Samsung Electronics headquarters and facilities in Giheung and Suwon, attracting business travelers, who account for over half of the hotel's guests.
Hotel Shilla signed a 15-year lease agreement in November 2013, with the option to extend for another 10 years by mutual agreement. With the hotel market currently experiencing a strong recovery, industry experts expect that the sale of Shilla Stay Dongtan could accelerate the sale of other major hotels in the Seoul metropolitan area, such as Courtyard by Marriott Suwon, owned by Hanwha's construction division.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
