Global Update : Profile
Lotte takes Manhattan ,
first
Lotte Hotels & Resorts CEO Yong- Dok Song last month unveiled the Lotte logo at its newly acquired Lotte New York Palace .
South Korea ’ s Lotte Group in September signaled its intentions to become a global hotel owner-operator when it unveiled the Lotte logo at its first acquisition in North America , the Lotte New York Palace .
Lotte Hotels & Resorts CEO Yong- Dok Song unveiled the new logo after acquiring the property in June for US $ 805 million from Northwood Investors . The company is also in the process of launching an IPO , which is expected by Q2 2016 .
HOTELS asked Song to explain better Lotte ’ s plans . Here is what he shared .
HOTELS : Can you outline your development strategy outside South Korea ?
Yong-Dok Song : Hotel Lotte Co . is currently operating 16 hotels in and out of Korea , and is planning a global expansion into major gateway cities ( potential sites could be Los Angeles , San Francisco , London , Paris , Singapore , etc .). With the objective of operating 50 hotels by 2020 with a Lotte brand , Hotel Lotte Co . will initiate acquisitions and / or pure management of key properties .
H : How much will you continue to develop in South Korea and closer to home compared to destinations like Europe and North America ?
YDS : We currently operate 11 hotels in a Lotte Hotel and a Lotte City Hotel brand , and are planning to further open three to four hotels . Therefore , our future expansion is most likely to be focused more within the Americas and the European continents rather than within the Korean peninsula .
H : What was the key to getting the New York deal done ?
YDS : We determined that having Lotte signage being placed in the heart of New York will increase the value of the Lotte brand and will be a great stepping-stone for the global expansion to America and Europe . This acquisition marks the start of the ‘ Global Leading Hotel ’ project to becoming the global hotel company .
H : Do you have any plans to change Lotte New York Palace ?
YDS : Lotte New York Palace Hotel is planning a project that adds value to the public space . To activate the usage of the space , we are in the preparation stage of carrying out a step-by-step upgrade for parts that need additional renovation .
H : Are you considering any JV partnerships as part of your global expansion plans ?
YDS : We are interested in partnership opportunities with a leading corporation , which we can trust and will help our expansion .
H : Would you like to acquire a portfolio of hotels outside of South Korea to jump-start global expansion , or will it more likely be big one-off deals like the New York Palace ?
YDS : We may consider an acquisition if the property is an iconic asset located in a gateway city , thereby supporting the global expansion of the Lotte brand .
H : Will you consider launching a new brand in a different segment or will all acquisitions be luxury hotels befitting the Lotte name ?
YDS : We are currently operating a 5-star brand named ‘ Lotte Hotel ’ and a 4-star brand named ‘ Lotte City Hotel .’ Furthermore , we are in the process of preparing for the launching of our 6-star brand named ‘ Signiel ’ and our lifestyle brand named ‘ L7 ,’ thereby expanding into the market with a variety of brands that would suit the location of the property and the specific market .
20 HOTELS December 2015 www . hotelsmag . com