Lotte Group Buys Top Hotel in New York

  • By Chae Sung-jin

    June 01, 2015 10:04

    Lotte Group has acquired the New York Palace Hotel in Manhattan for US$805 million, a first time for a Korean conglomerate.

    Lotte wants to foray into overseas hotel management to boost its brand image.

    The company said it acquired the hotel from real estate firm Northwood Investors and plans to start running it in August.

    Built in 1882, the hotel consists of a five-story building and a 55-story annex that was added in 1982. It has 909 rooms and 23 banquet halls and is near St. Patrick's Cathedral, Central Park and Carnegie Hall.

    Scenes from the TV series "Gossip Girl" were filmed at the hotel, which was once owned by the sultan of Brunei.

    Lotte Hotel CEO Song Yong-deok said the acquisition reflects the plans of chairman Shin Dong-bin to grow the company into one of Asia's top three brands by acquiring around 40 hotels overseas by 2018.

    Shin, who studied business management at Columbia University, has for some time had his eye on the hotel, which is frequented by foreign leaders and other dignitaries.

    Lotte runs 10 hotels in Korea and five overseas. A Lotte spokesman said the company hopes the latest acquisition will bolster the company's image in the U.S.

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