old hotel·From motel renovations to officetel repositioning, Combining real estate and hospitality

Remax Korea, a global real estate franchise(REMAX KOREA)Wa Hotel Operation Specialist Company Co., Ltd.AGMT(AZMT)go 11month 7Strategic Business Agreement(MOU)signed a contract. This agreement aims to increase the value of aging accommodation facilities and income-generating real estate across the country.(Value-Up) To jointly promote the project, Presenting a new model of collaboration between the real estate and hospitality industries.. At the signing ceremony, Remax Korea CEO Shin Hee-seong and AGMT CEO Kim Hong-yeol were present., And key officials from Remax Korea's hospitality team attended..

Through this agreement, both companies ▲Conversion of officetels and commercial facilities in the city center into lodging(Hotel conversion)and jointly discovering repositioning projects ▲old motel·Promoting hotel renovation and value-up ▲Business analysis and financial structure design ▲Content-based operations·Marketing execution ▲Promote asset value increase, including providing exit plans to investors and buyers(All) We decided to jointly carry out the steps.

Remax Korea has about 100 stores nationwide 1,000A network of over 100 certified real estate agents and global remax(RE/MAX) Discovering and acquiring hospitality assets based on the headquarters' overseas network.·Responsible for expanding the sales network.

AGMT is [Hotel Alive Jeonju Sihwayeonpung], [Hotel Alive Taean Hanok Beach Resort], [Hotel Alive Euljiro Gap], [Hotel Around Sokcho], [Hotel Around Pyeongchang], [Hyatt Place Busan Yeonsan] Operational experience accumulated through various projects·Branding·Based on the experience of content value-up, Responsible for improving operational efficiency and increasing asset value.

In particular, investor connection and buyer matching are jointly carried out by both companies., From business structure design to investment execution for discovered assets, We plan to provide an integrated solution, including exit strategies..

Recently, Remax Korea has moved away from its focus on existing real estate brokerage., Development of hospitality assets·operate·We are expanding our business area into an investment platform.. To this end, the hospitality team newly established this year, Resort, Research on remodeling and investment models for residential real estate, such as officetels.·We are developing, With this agreement as an opportunity, we plan to actively participate in domestic aging accommodation facility regeneration projects and regional-based projects..

CEO Shin Hee-seong “The accommodation industry is no longer confined to the realm of tourism., It is emerging as a new axis for real estate value creation.”as “AZMTBy upgrading idle accommodation assets across the country,, We will create a new investment platform that connects the real estate and hospitality markets.”He said.

AGMT directly develops hotels and residential accommodations in major locations nationwide.·Operating, 'Increased asset value through operations(Operational Value-Up) Leading the model.

CEO Kim Hong-yeol “Remax Korea's asset discovery capabilities AZMTOperation of·Content·When branding capabilities are combined,, old motel·This will be a powerful value-up model that can transform idle accommodation assets, including hotels, into new income-generating real estate.”He said “We plan to expand into an urban regeneration hospitality project that reconstructs the local residential experience in the future.”said.

Based on this agreement, the two companies 'Hospitality Asset Joint Discovery Committee', and hotels centered around the metropolitan area and major tourist destinations·Motel renovation, Officetel conversion, We plan to sequentially pursue various projects, including the development of a complex accommodation facility...

Kim Byeong-gyu(bk21@edaily.co.kr)

This article was originally published in The Economist.