Busan 'Hotel Illua' sale begins in earnest, lowest bid 87 billion wonPotential buyers sought after IM distribution, development prospects piled up Reporter Jeon Ki-ryongPublished 2024-06-20 07:39:03 This article was last updated on June 19, 2024 at 10:31 thebell This is an article that appeared in . 'Hotel Illua' located in Haeundae-gu, Busan Metropolitan City is going through the sale process. It is a building owned by a corporation with the same name as the hotel. Much interest is expected as Busan, where the hotel is located, is full of development potential. Another special feature is that it is included in the district unit plan, allowing for independent development.
According to the relevant industry on the 19th, Hotel Illua distributed an investment memorandum (IM) for the hotel it owned and began looking for potential buyers. It is a tourist hotel located at 1509-2 Jung-dong, Haeundae-gu, Busan and 2 other lots. The lowest bid price was set at 87 billion won. Remax Prime One is in charge of the sale.
The hotel has a land area of 3145.8㎡ and a total floor area of 5913.5㎡. There are 57 rooms on the 2nd basement floor and the 8th floor above ground. The lower floors (1st basement floor to 2nd floor above ground) are operated as retail facilities such as restaurants, bakery cafes, banquet halls, and restaurants. The hotel guest rooms are located on the upper floors (3rd to 8th floor above ground). The 2nd basement floor is a machine room.
The hotel is evaluated as having a good location. Hotel Illua is adjacent to Haeundae Beach. Ocean views are available from all rooms. It is about 1km from Jungdong Station on Busan Subway Line 2, so it can be reached in 15 minutes on foot. Since public transportation is convenient, it is expected to be easy to secure room demand.
Not far away, the Osiria Tourism Complex is being built. It is a project that will transform the area of Gijang-eup, Gijang-gun, Busan Metropolitan City into a 3,662,725㎡ tourism complex at a cost of 914.4 billion won. Currently, thanks to the Lotte World Adventure Busan, Lotte Shopping Mall, and IKEA, tourists are steadily flowing in.
The city of Busan, where the hotel is located, is also experiencing significant windfalls. The 'Gadeokdo New Airport' is being promoted with the goal of completion in 2029. When the new airport is completed, it is expected that not only will tourists flock in, but export and import businesses will also gain momentum. The 'Busan Port North Port Redevelopment Phase 1 Project' is also progressing steadily. The project scale alone amounts to 8.519 trillion won.
Thanks to this, sales of accommodations in Busan Metropolitan City are also steadily increasing. In particular, hotel sales in Busan Metropolitan City increased by 311.5% in the first half of last year compared to two years ago. Excluding resorts, which saw sales of 406.2% in the same period, hotels showed a steeper growth rate than any other accommodations, such as pool villas, pensions, and glamping.
Hotel Illua is also evaluated as having considerable special features. It is a second-class general residential area and is included in the Middle East 2nd District Unit Plan. In the future, it can be developed independently based on the building-to-land ratio of 60% and the floor area ratio of 220%. Currently, Hotel Illua has been completed with a building-to-land ratio of 29.8% and a floor area ratio of 144.9% and has received approval for use.
A market official said, "As Busan Metropolitan City is promoting urban development under the blueprint of '1 metropolitan center, 4 city centers, 6 sub-city centers, and 5 regional specializations,' the Haeundae area where Hotel Illua is located is expected to develop further," adding, "In addition, there are significant development windfalls such as the Gadeokdo New Airport and the Bukhang development project, so many inquiries are expected."
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