The ownership transition of Grand Hyatt Seoul, a landmark hotel located in central Seoul, has successfully been completed, Hyatt Hotel Corp.’s exclusive real estate selling agent Jones Lang LaSalle said Friday.

Acquiring the 41-year-old, five-star hotel building was a consortium led by Hong Kong-based investment firm PAG and Seoul-based Inmark Asset Management.

The duo had been picked as the preferred bidder by Hyatt Hotel Corp. in August and signed a stock purchase agreement in October.

Built in 1976, Grand Hyatt Seoul is one of the oldest among all currently operating hotels in Seoul, holding 73,272 square meters in gross area and 615 rooms.

Though details of the latest deal have not been revealed, market observers speculate the final amount at around 560 billion won ($482 million), slightly lower from the originally estimated level of 600 billion won.

Under a long-term consignment operating deal, the building will continue to be run as Grand Hyatt, according to officials.

“The transaction of this given asset marks an unprecedented case of investment in Seoul, where the market entry for top-tier hotels is challenging,” said Chang Chae-hun, managing director of JLL Korea.

“It has triggered considerable interest from investors here and abroad, in synergy with improvement signals in the macroeconomy and positive outlook for Seoul’s hotel business.”

According to a recent global capital flows report by JLL, Seoul displayed the highest level of liquidity in terms of commercial real estate transactions in the Asia-Pacific region, ranking third in the world, behind only New York and Paris. The corresponding estimate for South Korea came to around $1.3 billion.

Another preliminary survey showed that total transactions of hotels have amounted to around $1.1 billion so far this year, more than triple the yearly average from 2012 to 2018.

“Based on current trading performance records, Seoul will be one of the fastest-growing markets in Asia in terms of revenue per available room,” said Corey Hamabata, senior vice president at JLL’s Hotels & Hospitality Group.

JLL is a global real estate services provider, specializing in commercial property and investment management, currently operating in some 80 countries around the world. JLL Korea kicked off in 2000 as a wholly owned subsidiary of JLL Asia Pacific.

By Bae Hyun-jung (tellme@heraldcorp.com)