Hyundai group buys Banyan Tree resort

Home > Business > Industry

print dictionary print

Hyundai group buys Banyan Tree resort

Hyundai Group yesterday acquired Banyan Tree Club and Spa Seoul, a local unit of the luxury Singapore hotel chain, for 163.5 billion won ($139 million).

The sale was completed after the company was chosen as the preferred bidder for the six-star resort five months ago in January.

“Seoul has been experiencing a surging demand for hotel facilities and [needs to have] around 50,000 more rooms,” said the group in a release yesterday.

“With our administrative know-how, [Hyundai] is set to make Banyan Tree Club and Spa Seoul a luxury resort for families.”

The price was 4 billion less than earlier estimates after Hyundai group completed its due diligence.

A group board of directors meeting last month decided that four subsidiaries - Hyundai Elevator, Hyundai Securities, Hyundai Logistics and Hyundai Merchant Marine - would put up the financing of 90 billion won for Hyundai L&R, a specially established corporation for this acquisition. Hyundai Merchant and Marine owns 100 percent of Hyundai L&R. The rest of the purchase price will be financed from commercial banks.

The group said it will disclose more detailed management plans for the resort in the coming days.

A real estate agency, Urban Oasis, purchased the former Tower Hotel site on Mount Namsan in 2007 and opened the six-star resort in 2010, but it suffered from severe liquidity problems.

By Lee Sun-min []

More in Industry

Talking shop

Deliveries postponed

LG Display swings to profit in Q4 as OLED sales increase

LG Electronics wins a tech Emmy for its OLED TVs

To U.S. and away from China is the new investment trend

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now