SEOUL – November 1, 2024 – Funds managed by Blackstone Real Estate Partners (“Blackstone”) are partnering with Travelodge Asia, an integrated hotel investment and operating company focused on select-service hotels across Asia, to acquire an office building in Seoul’s Gangnam district, and convert into a new select-service hotel.
Chris Kim, Head of Real Estate – Korea, Blackstone, said: “We are thrilled to continue investing in South Korea and start work on this property by doing what we do best at Blackstone: transforming well-located assets and increasing their value. We are big believers in travel and leisure as an investment theme, including in South Korea, where its culture and medical services are driving demand. We look forward to partnering with Travelodge to create a new select-service hotel in one of Seoul’s busiest neighborhoods.”
Marcus Aw, Managing Director of Travelodge Asia, added: “We are delighted to partner with Blackstone for this investment, which will be our fifth acquisition in Seoul. We have been active in acquiring assets with strong value add upside potential from being repositioned as midscale hotels, with a particular focus on South Korea, Japan, Singapore and Hong Kong. South Korea continues to be a very popular destination amongst leisure and business travelers globally, so we are excited to team up with Blackstone on the upcoming hotel.”
Blackstone is one of the world’s largest investors in hotels – from The Cosmopolitan in the United States to Crown Resorts in Australia and Hilton Hotels around the world, the firm brings a global track record of transforming hospitality brands into leading destinations for dining and entertainment.
The building sits in the center of Gangnam’s prime office and commercial district, within walking distance to four subway stations, high-end residential complexes, hotels, retail and medical facilities. Seoul’s hospitality market has seen explosive growth following COVID, driven by the rise in inbound tourists. The country saw 7.7 million foreign arrivals in the first half of the year, a 74% increase from the same period in 2023.
This is the third real estate transaction from Blackstone in South Korea this year. Last month, Blackstone bought a large multi-story logistics asset in Gimpo. In April, Blackstone closed the sale of Arc Place, a Grade A office building in Gangnam. This sale – which was the largest commercial real estate transaction in Seoul’s major business district since 2022 – also marked the culmination of years of focused asset management to reposition Arc Place into a leading office building.
Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has US $325 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, data centers, residential, office and hospitality. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ business invests in substantially stabilized real estate assets globally, through both institutional strategies and strategies tailored for income-focused individual investors including Blackstone Real Estate Income Trust, Inc. (BREIT). Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).
Media Contacts
Ellen Bogard
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Ellen.Bogard@Blackstone.com
Wendy Lee
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