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LOTTE Hotel & Resorts Acquires New York Hotel Site, Accelerating Global Strategy Based on Key Overse
2025.12.16
■ LOTTE signed contract to acquire the hotel site following purchase od LOTTE New York Palace Hotel building
■ Expected to ease rising lease costs and improve financial soundness in line with group portfolio optimization
■ Secured operational stability to accelerate global business expansion
LOTTE will acquire the hotel site of LOTTE New York Palace from the Archdiocese of New York.
LOTTE Hotel & Resorts, which operates LOTTE New York Palace, has secured a foundation for stable long-term investment and operations by acquiring not only the hotel building but also the underlying land. The acquisition price for the site is 490 million USD.
In 2015, LOTTE Hotel acquired the New York Palace Hotel, the first five-star hotel in New York and a symbolic landmark in Manhattan, and reopened it under the name LOTTE New York Palace. At the time, LOTTE purchased only the building while renting the land. However, considering long-term brand value enhancement and future assets, LOTTE has pursued the acquisition of the land, and the transaction was finalized after lengthy negotiations with the Archdiocese of New York.
The hotel site has been owned by the Archdiocese of New York under a structure in which lease terms are renewed every 25 years. As land prices have risen significantly compared to 25 years ago, a substantial increase in lease fees was expected at the time of renewal, so this acquisition eliminated such uncertainty.
The land acquisition was carried out as part of the Group’s portfolio strategy, including efforts to improve financial soundness. By owning both the building and the land, LOTTE Hotel can now operate the property without exposure to external risks such as rising lease costs. To fund the acquisition, LOTTE Hotel is raising capital through liquidation of assets and pursuit of external investment.
From a long-term perspective, the acquisition cost is expected to be lower than cumulative lease payments, which should improve operating cash flow. In addition, the reduction of lease liabilities upon lease termination is expected to lower the debt ratio, further strengthening financial stability. The prime location in the heart of Midtown Manhattan is also expected to positively impact the future asset value of LOTTE New York Palace.
Building on the operational stability secured through this acquisition, LOTTE Hotel plans to focus on enhancing brand value. It aims to strengthen its presence in the global hotel market and use this as a key foundation for expanding its hotel management business, including in North America and other global markets.
A LOTTE representative stated, “The acquisition of the LOTTE New York Palace hotel site will serve as a significant turning point for global business expansion by enhancing brand value,” adding, “We will continue our efforts to establish ourselves as a leading global hotel brand.”
■ Expected to ease rising lease costs and improve financial soundness in line with group portfolio optimization
■ Secured operational stability to accelerate global business expansion
LOTTE will acquire the hotel site of LOTTE New York Palace from the Archdiocese of New York.
LOTTE Hotel & Resorts, which operates LOTTE New York Palace, has secured a foundation for stable long-term investment and operations by acquiring not only the hotel building but also the underlying land. The acquisition price for the site is 490 million USD.
In 2015, LOTTE Hotel acquired the New York Palace Hotel, the first five-star hotel in New York and a symbolic landmark in Manhattan, and reopened it under the name LOTTE New York Palace. At the time, LOTTE purchased only the building while renting the land. However, considering long-term brand value enhancement and future assets, LOTTE has pursued the acquisition of the land, and the transaction was finalized after lengthy negotiations with the Archdiocese of New York.
The hotel site has been owned by the Archdiocese of New York under a structure in which lease terms are renewed every 25 years. As land prices have risen significantly compared to 25 years ago, a substantial increase in lease fees was expected at the time of renewal, so this acquisition eliminated such uncertainty.
The land acquisition was carried out as part of the Group’s portfolio strategy, including efforts to improve financial soundness. By owning both the building and the land, LOTTE Hotel can now operate the property without exposure to external risks such as rising lease costs. To fund the acquisition, LOTTE Hotel is raising capital through liquidation of assets and pursuit of external investment.
From a long-term perspective, the acquisition cost is expected to be lower than cumulative lease payments, which should improve operating cash flow. In addition, the reduction of lease liabilities upon lease termination is expected to lower the debt ratio, further strengthening financial stability. The prime location in the heart of Midtown Manhattan is also expected to positively impact the future asset value of LOTTE New York Palace.
Building on the operational stability secured through this acquisition, LOTTE Hotel plans to focus on enhancing brand value. It aims to strengthen its presence in the global hotel market and use this as a key foundation for expanding its hotel management business, including in North America and other global markets.
A LOTTE representative stated, “The acquisition of the LOTTE New York Palace hotel site will serve as a significant turning point for global business expansion by enhancing brand value,” adding, “We will continue our efforts to establish ourselves as a leading global hotel brand.”
