DEVELOPMENT
predominant expansion vehicle . He elaborated by saying the company is open to acquiring or executing a joint venture with another brand to add to the portfolio .
Key gateways will be targets with an additional focus on hi-tech corridors like San Jose , Austin and Charlotte in the U . S . “ Those markets represent a great base and align well with L7 or Lotte ,” Petrus said , adding that he will also pursue some destination resort locations , especially in drive-to markets .
“ This is about exploring opportunities and looking at ways to grow responsibly ,” Petrus said . “ It is not growing for growth ' s sake . Lotte wants to make sure the business economics of deals provide financial stability . Acquisition is part of the formula .”
While almost every hotel company has an asset light approach today , Petrus said Lotte might have to first buy-in with some equity to gain traction and trade down the line to become more of a strict manager . He said Lotte understands this necessity if it wants to ramp up faster .
Petrus also said that Lotte will need to be nimble in the Americas and easier to work with . “ We have something to prove and must show we ’ re easier to work with in the process ,” he said .
Recognition in the Americas is also a big challenge for Lotte , according to Petrus . “ Lotte bought the New
York Palace for big bucks and it created an affiliation with an icon . They have been able to attach the brand to the property ,” he said . “ We must be able to replicate that with a few other key assets . The next moves we make will set the tone for the brand and that becomes critically important . Then we must build the regional infrastructure to support the brand . Those are immediate priorities . The key is to communicate our desire to be in this part of the world and work with investors and organizations .”
While there is no franchise program in place , Petrus said Lotte realizes it is another vehicle to expand given the right guardrails . It is open to exploring franchising with the right partners , he added .
In his new role for just a few weeks , Petrus is first making sure he is entrenched and best understands the company culture . “ Being Asian-based , it is important to understand how we created success ,” he said . “ Koreans have a level of gentility and respect . They are thoughtful and warm-hearted … The new Seattle hotel was able to introduce an Asian-inspired culture at the worst time ever ( September of last year ), and it was interesting to see the response . Consumers responded very favorably and Lotte is number one on TripAdvisor in the market . That ’ s really interesting when you ’ re going up against established players with bigger engines .”
16th floor lobby at Hotel Lotte Seattle