Cushman & Wakefield Korea, a global real estate consultancy, said on the 26th that it successfully completed a strategic rebranding project aimed at converting "Timework Myeong-dong" into a 4-star hotel.
"Timework Myeong-dong" is a mixed-use asset of about 37,000㎡ in total floor area on Namdaemun-ro's main boulevard, owned by IGIS Asset Management, and secured near-new physical competitiveness through a major renovation in 2021.
The former operator, Ibis Ambassador Myeongdong, was a representative 3-star hotel in the area, favored by foreign tourists thanks to its specialized location where global retail brands and medical facilities coexist.
With the recovery of the Myeong-dong hotel market after the endemic and the lease expiration as a catalyst, IGIS Asset Management, which was seeking to enhance asset performance, pursued a new lease structure premised on an upgraded brand, beyond a simple renewal, based on a rebranding strategy proposed by Cushman & Wakefield Korea. In the process, a comprehensive project covering all stages was carried out, starting with reestablishing the asset's positioning, attracting a global operator, designing a new lease structure and negotiating terms, and finalizing the renovation scope and budget for the 4-star conversion.
Through about 10 months of discussions, "Timework Myeong-dong" is set to be converted into a 4-star hotel, and considering the average daily rate (ADR) and occupancy in the Myeong-dong 4-star market, rent is expected to rise to about 200% of the previous level.
A representative of IGIS Asset Management said, "This project not only significantly improved asset value and revenue structure through rent increases, but also served as a case where the operator could stably secure a strategic foothold in Myeong-dong's core commercial district and build a foundation to strengthen brand competitiveness."
Min Byung-eun, Head of Team for hospitality advisory services at Cushman & Wakefield Korea, said, "This rebranding was not a simple lease renewal but a strategic project that reestablished the asset's market positioning and refined the operating structure," adding, "By balancing the interests of the landlord and the operator in the design, it simultaneously secured profitability and medium- to long-term operational stability, making it a symbolic transaction that raised the value bar in the Myeong-dong hotel market."