This article was published at 11:02 on May 5, 2026, on Signal, the capital markets compass.
Shinsegae Property Investment Management will acquire Orakai Daehakro Hotel, a four-star property in Wonnam-dong, Jongno-gu, Seoul, for 150 billion won. Shinsegae was highly rated not only on price but also on deal-closing capability and operational strategy, sources said.
According to investment banking industry sources on the 5th, comprehensive furniture company Nefs selected a consortium of Shinsegae Property and Josun Hotels & Resorts as the preferred bidder for Orakai Daehakro Hotel. The acquisition price is 155 billion won, with Deloitte Anjin serving as the sale manager.
The auction drew intense competition amid rising hotel demand from increasing foreign tourist arrivals. Eleven financial and strategic investors participated in the initial bidding, with Mastern Investment Management, Bluecove Asset Management and Hangang Asset Management joining the Shinsegae consortium on the shortlist.
The Shinsegae consortium has been actively expanding into the hotel market, and its long-term operational plans were highly regarded by the seller, Nefs. The fact that Shinsegae Property formed a consortium with Josun Hotels & Resorts was also viewed positively, as it ensures stable deal closing.
Shinsegae has been broadening its footprint in the hotel sector. Grand Josun Jeju was incorporated into a REIT structure this year through Shinsegae Property Investment Management (AMC). Shinsegae Group is reviewing plans to operate hotel assets as a listed REIT over the long term, accumulating assets before restructuring them on a portfolio basis.
Completed in 2019, Orakai Daehakro Hotel is a four-star property located at 49-17 Wonnam-dong, Jongno-gu, Seoul. It has a total floor area of 5,872 pyeong (19,413 square meters) and 232 guest rooms. As a newly built asset, rebranding without additional capital expenditure was cited as an advantage early in the sale process.
The hotel, comprising five basement floors and 15 above-ground floors, also allows for additional room capacity through space optimization. The fifth floor, currently not in operation, can be converted for guest room use, while the third and fourth floors housing ancillary facilities could be consolidated to expand room count.
Orakai Daehakro Hotel benefits from rich cultural and commercial infrastructure, including Daehakro — Seoul's landmark culture and arts district — as well as the Insadong, Ikseondong and Dongdaemun commercial districts and traditional markets. Nearby tourist attractions popular with visitors include Changdeokgung Palace, Changgyeonggung Palace, Jongmyo Shrine and Bukchon Hanok Village, supporting robust domestic and international tourism demand.
Its proximity to Seoul National University Hospital is also expected to generate steady weekday demand from medical stays. Its prime location in the northeastern part of Seoul's central business district (CBD) offers the advantage of capturing both business and tourism demand.
"Korea's hotel market has continued to grow, with foreign demand diversifying since last year," an IB industry official said.
