Hanwha to Sell Courtyard by Marriott Suwon for About 100 Billion Won [Financial News]

[Financial News] Hanwha Group will transfer the four-star hotel Courtyard by Marriott Suwon in Gwanggyo, Suwon, Gyeonggi Province, to ARA Korea Asset Management for about 100 billion won. For ARA management, this marks its second hotel investment in South Korea after Conrad Seoul in Yeouido in 2024. Hanwha, which is working to strengthen its financial footing after a restructuring of its governance structure, and ARA, which is seeking to expand hotel investments, found their interests aligned.
According to the investment banking industry on the 1st, ARA Korea Asset Management signed a sales contract with Hanwha Group worth about 100 billion won on the day. The deal is scheduled to close at the end of September. ARA will acquire the property with its own funds through a real estate private equity fund it recently established, without acquisition financing.
Based on 288 guest rooms, the price per room comes to around 400 million won. That is considered a reasonable valuation compared with the recent average transaction price of nearly 700 million won per room at four-star hotels in Seoul.
Opened in 2020, the hotel has a total floor area of 24,033 square meters and 288 rooms, making it the only four-star hotel in Gwanggyo New Town. It is located in a Meetings, Incentives, Conventions, and Exhibitions (MICE) complex that includes the Suwon Convention Center. Its proximity to Samsung Digital City and its access to the semiconductor clusters in Yongin, Hwaseong, and Pyeongtaek are seen as key attractions, as they support steady corporate travel and MICE demand.
One real estate IB industry official said, "This is a deal that secured a hotel with corporate demand in southern Gyeonggi at a relatively low price, at a time when hotel prices in Seoul have risen sharply." The official added, "The interests of Hanwha's monetization of non-core assets and ARA's expansion of its hotel portfolio aligned."
Earlier, ARA management entered the domestic hotel investment market in earnest by acquiring Conrad Seoul in The International Finance Center Seoul for 415 billion won in 2024. As operating results came in better than expected, the firm has now expanded its investment scope to southern Gyeonggi Province.
Anthony Kang, head of ARA Korea Asset Management, said, "Following Conrad Seoul, we have secured another high-quality hotel with stable corporate demand." He added, "We will continue to identify competitive hotel investment opportunities."
Meanwhile, Hanwha Corporation E&C Division has been pushing ahead with hotel sales since 2024 as part of efforts to secure liquidity and adjust its real estate portfolio.
This year, the need to improve financial soundness became even greater after the spin-off of Hanwha M&S. Net assets were split roughly 76 to 24 between the surviving and newly established entities, while most of the debt remained with the surviving company, pushing its debt ratio to an estimated 270% range.
The sale proceeds are expected to be used to repay borrowings and support key group businesses. As the largest shareholder of Hanwha Solutions Corporation, Hanwha Group also plans to take up its allotted portion of a capital increase worth more than 1 trillion won. Hanwha Life's earlier transfer of the Hanwha Building in Janggyo-dong to Hanwha REITs for 808 billion won is also being interpreted as part of the group's broader asset monetization trend.
[email protected] Kang Gu-gui Reporter