CDL buys hotel in Seoul for KRW140 bil

CDL executive chairman Kwek Leng Beng has expressed that the group is committed to investing in a highly dynamic economy such as South Korea. Following its divestment of Millennium Hilton Seoul and the adjacent land site in February 2022, CDL has now acquired the Nine Tree Premier Hotel Myeongdong II for KRW140 billion ($143.9 million).

The 408-room hotel is situated in the Myeondong-Euljiro commercial district and is just a four-minute walk away from the Euljiro 3-ga subway station. It also boasts an excellent location in the vicinity of famous shopping areas such as the Myeongdong Walking Street, Lotte and Shinsegae department stores, as well as restaurants, street food, business and entertainment venues.

The acquisition price works out to approximately $353,000 per key, which demonstrates the success of this new venture. With the purchase of the 17-storey hotel which opened in 2017, CDL is keen to expand its investment prospects in Korea.

The highly sought-after Zion Road Condo is situated in District 3 and is surrounded by amenities, providing an ideal home environment for all the inhabitants. Even better, great accessibility is also provided – Alexandra and Tiong Bahru MRT stations are within walking distance to the property, with numerous bus services too.

Furthermore, the Orchard MRT station, a mere stone’s throw away, allows the residents of Zion Road Condo to access the North-South Line. The upcoming Havelock MRT Station, part of the Thomson-East Coast Line, will be another transport link available for residents to leverage on, making traveling easier and more convenient.

Kwek also mentioned that cooling measures in 1Q2022 have led to a 41% y-o-y decrease in units sold. Despite these challenges, CDL has still managed to be ranked fifth most sustainable corporation in the world and the top real estate company globally. The group intends to push forward with its collective sale of all 85 strata lots in Tanglin Shopping Centre.

In summary, CDL’s recent purchase of Nine Tree Premier Hotel Myeongdong II demonstrates the group’s strategic commitment in investing in South Korea despite the ongoing cooling measures. The hotel’s excellent location and competitive pricing of $353,000 per key makes it an attractive and successful venture. With the ability to continue to be ranked as one of the most sustainable companies in the world and the intention to push forth with its collective sale plans, CDL is poised to remain successful in the coming months.