Shinsegae(004170) Group is joining hands with the global real estate developer OKO Group to enter the development business for the world-class premium hotel and resort brand "Aman." Shinsegae Group Chairman Chung Yong-jin's move is seen as a bid to extend the mixed-use development capabilities honed with Starfield into the global luxury hospitality market.
Shinsegae Group said on the 21st that its real estate development affiliate, Shinsegae Property, recently signed a memorandum of understanding (MOU) at the Josun Palace Hotel in Seoul with OKO Group to establish a joint venture (JV). This year, Chairman Chung became a co-CEO of Shinsegae Property as the company was reorganized under the "Chung Yong-jin leadership." Chung and Vladislav Doronin, chairman of OKO Group, attended the signing ceremony.
OKO Group has overseen the development of Aman-branded hotels and residences. Doronin, a Russian-born billionaire, acquired Aman in 2014 and has grown the brand by building urban luxury hotels in major cities such as New York. It has built 84 buildings worldwide with more than 7.4 million square meters of assets.
The two companies agreed to raise an initial investment of $500 million (about 750 billion won) for the joint venture. The joint venture will first develop the hotels and residences of Aman Group's luxury brands "Aman" and "Janu" in Asia and North America. They also agreed to cooperate on domestic and overseas mixed-use commercial real estate development.
Aman is an ultra-luxury brand that, since opening its first resort, "Amanpuri," in Phuket, Thailand, in 1988, operates 36 hotels, resorts, and residences in 21 cities worldwide. In 2020, it unveiled its sister brand "Janu," which means "soul" in Sanskrit, and following Tokyo in 2024, it is proceeding with hotel and residence development in Dubai and Saudi Arabia.
Chung said, "This strategic partnership reflects our confidence that Shinsegae Property's development model, proven in Korea, can be effectively applied in the global hospitality market," adding, "We will set a new standard in the global luxury hospitality market."