Korean conglomerate taps into US market
Hotel Lotte, a subsidiary of South Korea’s fifth-largest conglomerate Lotte Group, recently said that it had signed a contract to purchase a premium hotel in the United States.
Under the agreement, the Seoul-based company plans to spend $175 million to purchase Hotel at The Mark in downtown Seattle from U.S. private-equity fund Stockbridge.
Hotel Lotte has formed a consortium with South Korean brokerage house Hana Financial Investment to acquire the 44-story hotel. The firm will start to operate the luxury hotel next June after renaming it Lotte Hotel Seattle.
With 189 rooms, including 31 suites, the hotel is situated some 20 kilometers from the Seattle-Tacoma International Airport. It also has a three-story attached building for meetings and banquets.
As the hotel is close to the head offices of such multinational companies as Amazon, Starbucks, and Microsoft, Hotel Lotte expects that it would offer stable cash streams.
Hotel Lotte, which runs 20 hotels in South Korea, has tried to tap into offshore markets as it operates more than 10 hotels and resorts outside of the country.
In particular, the outfit has briskly made inroads into the U.S. market. In 2015, for example, it acquired Lotte New York Palace.
“Based on an aggressive expansion strategy, we will strengthen our presence as a representative South Korean hotel brand in the global market,” Hotel Lotte CEO Kim Hyun-sik said in a statement.
After the acquisition, Hotel Lotte is expected to speed up its efforts to go public on the South Korean stock market. It is a sub-holding company of Lotte Group.
This article is provided by UPI News Korea.