Accelerating Asset Sales to Secure Liquidity
Hanjin Group is accelerating its move to sell off Waikiki Resort Hotel in Hawaii. The group plans to invite bids for the hotel early next month.
The value of the hotel is estimated at about US$100 million. Potential takeover candidates reportedly include Japanese investors and mid-sized Korean construction companies.
The hotel is 100 percent owned by Hanjin KAL and is adjacent to Waikiki Beach in Hawaii. The 275-room hotel was profitable before the COVID-19 outbreak with the occupancy rate reaching 94 percent. It posted around 1.5 billion won in net profit each year.
Hanjin Group is rushing to sell assets at home and abroad as the sale processes for its major assets, including a land plot in downtown Seoul, have made little progress. It will invite preliminary bids for Wangsan Leisure Development next month and is reportedly in negotiations with a Chinese investor for the sale of the Wilshire Grand Center in Los Angeles, which has already been put up for sale. Korean Air invested US$1 billion (about 1.53 trillion won) in the Wilshire Grand Center over eight years through Hanjin International Corp. (HIC), a U.S. subsidiary.