Korea’s top resort operator Sono buys T'way stake for $76 mn

South Korea’s top resort operator Sono International Co. has bought a stake in T'way Air Co., a local low-cost carrier (LCC), for 105.6 billion won ($76 million) after taking over overseas hotels to expand its global businesses.

Sono purchased a 14.9% stake in T'way from JKL Partners with an option to buy the remaining 11.87% stake held by the Seoul-based private equity firm by the end of September, according to industry sources on Tuesday.

The budget airline’s largest shareholders are T'way Holdings Inc. and its top stockholder YeaRimDang Publishing Co. Together they have a 29.74% stake.

Sono invested in T’way as a part of its global expansion strategy, industry sources said. The LCC is actively increasing long-haul flights such as routes to Europe, which is expected to help the resort operator create synergy with overseas hotels it has acquired, according to the sources.

HOTELS, AIRLINE

The resort operator has been expanding its overseas businesses since it unveiled its goal of securing 500 chains in other countries, changing its brand to Sono from Daemyung in 2019.

Sono secured the operating rights of a Vietnam-based golf resort owned by Hyundai Engineering & Construction Co. in 2019 and took over the Normandy Hotel in Washington D.C., in 2022 and 33 Seaport Hotel New York in 2023.

Sono acquired Hotel Dame Des Arts in Saint Germain-des-Prés, Paris in March of this year and a 100% stake in Hawaii-based Waikiki Resort Hotel Inc. from Hanjin Kal Corp. in April.

The South Korean hospitality company also plans to make inroads into Japan and Indonesia.

The active expansion spurred expectations that Sono may again pursue an initial public offering, industry sources said.

The company sought a listing in 2019 but dropped the plan due to COVID-19.

Write to Ji-Yoon Yang and Jun-Ho Cha at yang@hankyung.com
 

Jongwoo Cheon edited this article.