Keppel Investment Management, the South Korean arm of Singapore-based real estate investor Keppel Capital Holdings, has purchased Sheraton Seoul D Cube for 131.7 billion won ($117.9 million) to embark on a redevelopment project to turn the hotel into a commercial office building.

In the latest indication that luxury hotels in Seoul are increasingly losing their luster, Sheraton Seoul D Cube, located in Guro-gu, western Seoul, shut down Sunday after opening in 2011, according to the hotel franchise operator. The first five-star hotel in western Seoul housed over 250 guest rooms, 12 suites and 12 meeting rooms.

The deal was signed in September, as Daesung Industrial, which owned the hotel via JR Asset Management, sought to repay debts through selling the property.

Keppel is expected to convert the newly acquired land into offices in conjunction with the adjacent property currently used as office space.

The Sheraton Seoul D Cube transaction is one of the latest among property investors seeking to make moves on the battered hotel industry in Korea.

One of the latest deals is now led by Igis Asset Management, a Seoul-based fund manager dedicated to real asset investment. Earlier in October, it signed a memorandum of understanding with Singapore’s City Developments Limited to acquire Millennium Hilton Seoul -- a landmark hotel in the central district of Seoul. The two aim to sign binding terms in December, with Igis looking to transform the property into a multiuse facility. Igis also acquired Tmark Grand Hotel Myeongdong from travel agency HanaTour Service in August.

Several high-end hotels, such as Sheraton Seoul Palace Gangnam Hotel and Le Meridien Seoul Hotel, have closed down due to the pandemic. Both are poised to be redeveloped into residential buildings.