Paradise Co Ltd, an operator in South Korea of foreigner-only casinos, announced on Wednesday a plan to invest KRW575.0 billion (US$396.4 million) to build a new hotel in eastern Seoul’s Jangchung neighbourhood. The aim is for the new hotel to open in 2028, stated the firm in a filing to the Korea Exchange.
In a separate announcement, Paradise Co said it had secured a KRW550.0-billion loan facility from Woori Bank to fund the construction of the new property in South Korea’s capital.
The financing is structured as a five-year loan, with a “lump-sum repayment due at maturity,” said the firm.
The company said the loan would be withdrawn in instalments during the period of the facility, “according to the progress” of the investment.
Interest on the loan is at the 91-day certificate-of-deposit rate of 2.84 percent – as recorded on Tuesday (March 11) – plus 0.97 percent, meaning a final rate of 3.81 percent, the filing added.
Paradise Co said the development would be categorised as “uber luxury”, emphasising “the highest level of exclusive luxury, providing customised services and top-notch facilities for select customers”.
According to information previously disclosed by the company, the new property is to have 18 floors and approximately 200 rooms – all suites – as well as five basement levels. It would cover 13,950 square metres (150,156 sq. feet), and offer facilities including “premium services for foreign VIPs”.
There has been no mention of whether there was an aim to have a casino in the new property.
In Wednesday’s announcement, Paradise Co said the aim was to diversify the group’s business portfolio via the construction of a new hotel “to create synergy with the existing casino business”.
The casino firm recorded group-wide net income at KRW104.3 billion for full-year 2024, up 30.1 percent year-on-year. The company’s sales reached approximately KRW1.07 trillion, up 7.8 percent from 2023.
The company has declared a year-end cash dividend of KRW150 per unit of common stock, to be paid on April 25. The total dividend payout under the exercise would be approximately KRW12.95 billion.
Paradise Co controls outright three casino venues: Paradise Walkerhill in Seoul; Paradise Jeju on Jeju island; and a property in the port city of Busan. It also has a venture with Japan’s Sega Sammy Holdings Inc for the Paradise City casino resort at Incheon, near South Korea’s main airport.
In November last year, the firm opened a new customer lounge at Gimpo International Airport in Seoul. The “Paradise Lounge” caters to the group’s “VIP customer base,” according to the company.
