Hanwha Hotels buys debt-ridden Mount Bukhan resort, aims to transform it into premium stay

Hanwha Hotels made the acquisition of the resort located on Mount Bukhan through its subsidiary, which wholly bought the resort's owner Jeongsang Bukhan Resort, according to an electronic disclosure through the Financial Supervisory Service on Wednesday. Hanwha Hotels invested 29.5 billion won to acquire 295,000 common shares, and an additional 500 million won as part of the initial equity contribution at the time of the stake purchase.

Previously known as Paraspara Seoul, the hotel and resort complex has been rebranded as "Anto," a new brand that Hanwha Hotels explained will "redefine wellness within the beauty of nature," according to a notice posted on the resort's website.

Anto — a five-star resort with over 300 rooms located in Gangbuk District, northern Seoul — is the 11th addition to Hanwha Hotels’ portfolio, which includes The Plaza Seoul hotel in Jung District, central Seoul, and resorts in tourist areas like Jeju Island and Mount Seorak. The chain also operates the Mohegan Inspire Entertainment Resort in Incheon, Korea’s largest five-star resort, under an outsourcing deal.

While Hanwha Hotels has primarily managed resorts marketed at low- to mid-prices, the firm plans to promote Anto as a luxury accommodation choice that appeals to high-earning customers.

The deal marks a key moment for Hanwha Hotels, which saw its business weaken last year.

Hanwha Hotels recorded 750.9 billion won in revenue in 2024, up 2.55 percent from the previous year, but operating profit plummeted 41.86 percent on year to 23.8 billion won. Its resort business swung to a loss in 2024 from an operating profit of 22 billion won the previous year.

The acquisition was reportedly spearheaded by Kim Dong-seon, vice president of Hanwha Galleria and Hanwha Hotels & Resorts and the third son of Hanwha Group Chairman Kim Seung-youn.

Kim Dong-seon, who has typically focused on food and beverage ventures, is credited with introducing the Five Guys burger chain to Korea and launching Benson, a premium ice cream brand. But his management record has raised shareholder concerns after a robot-operated udon shop in central Seoul and a pasta restaurant with robot cooks shut shortly after opening amid sluggish sales. Hanwha Galleria — which owns FG Korea, operator of Five Guys in Korea — is also in talks to sell the burger chain’s franchise rights, two years after introducing the brand in 2023.

The vice president is planning to create synergy across food service, distribution and resorts by linking catering company OurHome, acquired in May, with retail firm Hanwha Galleria and Hanwha Hotels, the Chosun Ilbo reported.

BY KIM JU-YEON