KAL Hotel Network to shut down Jeju KAL Hotel Company aims to focus on sale process amid snowballing losses
Translated by Kim So-in 공개 2022-02-21 08:04:09
이 기사는 2022년 02월 21일 08:02 thebell 에 표출된 기사입니다.
KAL Hotel Network, a subsidiary of Hanjin KAL, has decided to shut down Jeju KAL Hotel to stop snowballing losses.Hanjin KAL said in its regulatory filing on Thursday that it will shut down Jeju KAL Hotel, which is operated by KAL Hotel Network. Hanjin KAL held a board meeting in November 2021 and decided to sell the hotel.
“We have decided to shut the operations down as we need to secure liquidity through the sale of Jeju KAL Hotel, which has been accumulating losses for the past five years due to the Covid-19 pandemic,” said an official at Hanjin KAL. “We plan to use the proceeds from the sale to improve our financial status by repaying debts.”
The company tried to offload the hotel by distributing information memorandum last year, but the process showed little progress. “The decreasing number of hotel guests after the pandemic has put the company under heavy pressure to operate and maintain the business,” an industry source said.
Market insiders are paying attention to whether the sale process will speed up after the decision to shut down Jeju KAL Hotel. It is understood that the company intends to reduce losses by closing operations and focus more on the sale process instead of continuing the loss-making business amid its struggle to find a suitable buyer for months.
Hanjin Group’s planned sales of other hotel assets have also been cancelled amid absence of potential buyers.
Last year, the group decided to sell Paradise Hotel building and land in Jeju, Grand Hyatt Incheon, Jeju KAL Hotel, Seogwipo KAL Hotel and Waikiki Report Hotel in Hawaii.
Hanjin Group’s hotel business has recorded losses even before the outbreak of the pandemic. Hanjin KAL has reported losses each year since 2015, except for 2016, according to the company’s audit report on the consolidated financial statements. The hotel business posted the worst-ever operating loss of 28.8 billion won in 2020, hit hard by the Covid-19 pandemic.
Hanjin Group Chairman Cho Won-tae said in February 2020 that the group will sell non-core assets to improve its financial status. Korean Air Lines’ idle land in Songhyeon-dong, central Seoul, Jeju KAL Hotel and Korean Air’s wholly-owned subsidiary Wangsan Leisure Development were put up for sale. Korean Air reached an agreement with the city of Seoul to sell its land in Songhyeon-dong. (Reporting by Seo-young Kim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
- '문닫는' 제주KAL, 한진칼 호텔 매각작업 '난기류'
- KCGI의 주주제안, 한진칼 변화 폭 커지나
- 한진그룹 오너 경영권 분쟁...후끈 달아올랐던 한진칼
- Share sale by Hanjin matriarch unlikely to reignite management dispute
- Hanjin heiress promoted to president, likely to aim for board seat
- KFTC to conditionally approve Korean Air’s acquisition of Asiana
- Korean Air’s assets sale plan one step closer to completion
- Korean Air continues to inject funds in its loss-making leisure business
best clicks
최신뉴스 in 전체기사
-
- SK하이닉스의 20조 투자 자신감 '엔비디아 선급금'
- 유가 오르면 정유사 버는 돈 많아질까, 이익구조 뜯어보니
- 캡티브 잡자…퇴직연금 사업자-계열사간 인력 교류
- [스튜어드십코드 모니터]한화운용, '이사 선임·자사주 취득' 주주제안 일부 반대
- [제일약품의 온코닉테라퓨틱스 첫 '신약']제약사 스핀오프 모범선례 '독립성·전문성'에 전권줬다
- [thebell desk]'부동산 PF' 누가 떠안을 것인가
- [VC 경영분석]'펀딩부터 차곡차곡' 리인베스트, BEP 달성 '가시권'
- [thebell interview]"그레이드헬스체인, 인슈어테크 넘어 데이터 회사로"
- MYSC, 전북임팩트펀드 '머쉬앤'에 마수걸이 투자
- [VC 팔로우온 투자파일]'파우치 필름 전문' 릴엠, 시리즈A 100억 투자 유치