Lotte Group said Sunday that it has sealed a deal to buy the New York Palace Hotel in Manhattan for $805 million from U.S. real estate management firm Northwood Investors.
Hotel Lotte, one of the group’s core business units, plans to set up a new company in the United States to operate the hotel and complete the takeover by August. The deal, signed on Friday, marks the first time for Lotte to run a hotel in the heart of New York City.
The New York Palace Hotel is a luxury hotel located in Midtown Manhattan. It consists of the famed Villard Mansion ― a 133- year-old New York City landmark ― and a contemporary 55-story tower featuring 909 rooms and suites and 23 conference rooms.
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| The New York Palace Hotel. (Lotte Group) |
Villard Mansion, built by Henry Villard in 1882, is recognized as a historic site in the city alongside the Madison Avenue Courtyard that provides “a dramatic entryway into the hotel’s grand lobby,” according to the hotel’s website.
The recent deal is a part of Lotte’s ongoing efforts to expand its hotel business around the globe.
Starting with the opening of the Lotte Hotel Moscow in Russia in 2010, the group has built new accommodations in Vietnam, Uzbekistan and Guam while construction is ongoing in three Chinese cities and Yangon, Myanmar. The company also acquired a hotel in St. Petersburg earlier this year.
“Through this deal, we hope to heighten our brand value around the globe and increase our presence beyond Southeast Asia and Europe into the United States,” the group said.
By Sohn Ji-young (jys@heraldcorp.com)
