Goldman Sachs Buys Seoul Hotel Complex From Hyundai Asset Management in $194M Deal

The alternatives arm of banking giant Goldman Sachs has completed its acquisition of a hotel complex in central Seoul from Hyundai Asset Management, with market sources confirming a deal value of KRW 262 billion ($194 million).

Goldman picked up Mercure Ambassador Seoul Hongdae, a 270-key hotel and retail property in the upmarket Hongdae neighbourhood, on behalf of a real estate fund, the Manhattan-based firm said Thursday in a release. The hotel is managed by Korean hospitality group Seohansa under Accor’s Mercure brand, while the retail component is anchored by e-commerce player Musinsa, which plans to use the space as a flagship location for private-label offerings.

The investment in Mercure Ambassador — Goldman’s first in the Korean hospitality sector — reflects the firm’s conviction in the country as a strategically important market for real estate investment, said Nikhil Reddy, head of Asia Pacific real estate at Goldman Sachs Alternatives.

“The property’s location and high foot traffic resulting in strong flagship retail demand, presents a compelling opportunity to deliver long-term value for our investors,” Reddy said.

Korean Partners

The deal value, translating to KRW 970.4 million ($700,000) per key, was first reported last week by the Korea Economic Daily. Goldman Sachs declined to comment on pricing.

The Goldman fund partnered with JB Asset Management, a unit of the Korean conglomerate that owns Jeonbuk Bank, on the transaction, which also saw a co-investment from long-term lessee Ambassador Hotel Group, according to KED.

The acquisition of Mercure Ambassador showcases the resilience of Seoul’s hospitality market post-COVID, said Min Joon Kim, senior vice president in the hotels and hospitality group at JLL, which advised on the sale.

“Overcoming challenges such as global volatility, mitigating retail tenant turnovers, and restructuring the investment, the successful sale of the Mercure Hongdae underscores the robust potential of the Hongdae district and enduring appeal of prime locations to foreign institutional investors,” Kim said. “This sale was the second time JLL sold this asset — first in 2020 and again in 2025 — signalling the strong confidence in the hotel sector’s future potential.”

The asset represents Goldman Sachs Alternatives’ second value-add real estate investment in the immediate vicinity, following the repositioning of the next-door Scarlet Building, a six-storey retail and office property, as a high-occupancy flagship retail asset.

“We are excited to build on our established track record in Korea, where we have been investing for over 25 years, through strong local partnerships and disciplined value-added execution leveraging our global network, capital and resources,” Reddy said.

Tourism Surge

South Korea’s international visitor arrivals jumped 48 percent to 16.3 million in 2024, nearly reaching pre-pandemic levels, according to official statistics.

Surging tourism has coincided with strong interest in local hotel deals, with Singapore-based ARA Asset Management acquiring the Conrad Seoul from Canadian giant Brookfield last year for KRW 400 billion ($289 million), or $666,854 per key.

KED reported on two more hospitality deals in February, with Singapore sovereign fund GIC winning the rights to buy three Korean hotels valued at more than KRW 600 billion from the DL Group conglomerate and Australia’s Macquarie selling Four Points by Sheraton Josun, Seoul Station, to KB Asset Management for KRW 170 billion.