Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Goldman Sachs bets on Hongdae real estate amid Korea tourism boom
Mercure Ambassador Seoul Hongdae in Seoul / Courtesy of Goldman Sachs Alternatives
By Lee Yeon-woo
Goldman Sachs Alternatives has completed the acquisition of the Mercure Ambassador Seoul Hongdae, a 4-star hotel and mixed-use retail property located in the heart of Seoul, the company said Thursday.
The hotel, which features 270 guest rooms, is currently operated by Seohan Tourism Development under the Mercure brand, part of the global hospitality group Accor.
The property's lower floors house major domestic retail companies that are expanding their offline presence. The space is also set to serve as a flagship location for leading e-commerce firms to showcase and sell their private-label products.
Goldman Sachs Alternatives noted that the acquisition is well positioned to capitalize on resurging inbound tourism to Korea and the continued global interest in Korean culture.
According to the Korea Tourism Organization, international visitor arrivals climbed to 16.3 million in 2024 — a 48 percent year-on-year increase — bringing the country close to prepandemic levels. Regional data further shows that Seoul's Mapo District, where the property is located, attracted 8.8 million international travelers last year.
Hongdae, one of Seoul’s most dynamic submarkets, is renowned for its vibrant, youth-driven culture. It offers immersive experiences rooted in Korean cultural appeal, including K-pop as well as K-beauty and lifestyle.
Goldman Sachs Alternatives has a track record of successful investments in the area. Its first project, the Scarlet Building — spanning approximately 6,032 square meters — was transformed into a high-occupancy anchor retail destination following a comprehensive renovation.
The firm said it will continue to actively pursue real estate equity and credit investment opportunities across Korea.
"This investment reflects our continued conviction that Korea is a strategically important market for our real estate investing platform," said Nikhil Reddy, head of real estate for Asia Pacific at Goldman Sachs Alternatives.
"The property’s location and high foot traffic, resulting in strong flagship retail demand, presents a compelling opportunity to deliver long-term value for our investors," Reddy added.