Goldman Sachs buys Seoul’s Mercure Hongdae Hotel
Goldman Sachs Alternatives has acquired the Mercure Ambassador Seoul Hongdae, a 270-room hotel and mixed-use retail property in one of Seoul’s busiest youth and tourist hubs, the firm said Thursday.
The asset, part of Accor’s global Mercure brand, was purchased through a real estate fund managed by Goldman Sachs Alternatives. It is located in the heart of Hongdae, a vibrant neighborhood in Mapo-gu, northwestern Seoul, known for its dense retail presence and cultural appeal.
The property's retail component is anchored by a major Korean retailer expanding its offline footprint. The space will serve as a flagship for the brand’s private-label products, complementing its e-commerce platform.
“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.”
The firm highlighted Hongdae as one of Seoul’s most dynamic submarkets, citing its proximity to multiple universities, strong retail demand, and easy access — just 30 minutes from Gimpo Airport and a three-minute walk from a subway station.
The deal builds on Goldman Sachs’ earlier acquisition of the nearby Scarlet Building, a six-story retail asset that the firm repositioned into a local landmark.
Goldman Sachs said both the hotel and retail components are well-positioned to benefit from Korea’s rebound in inbound tourism and rising global interest in Korean culture. International arrivals reached 16.3 million in 2024, up 48 percent from the previous year and nearing pre-pandemic levels, according to the Korea Tourism Organization. Separate data showed Mapo-gu alone saw more than 8.8 million international visitors — over 2 million more than in 2023.
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