Hotel Lotte Co., a luxury hotel chain of South Korean retail giant Lotte Group, is looking to add a four-star hotel in downtown Chicago to expand its US hotel network and international profile to its IPO program.
According to several retail industry sources on Monday, the Lotte Hotel is working to finalize the purchase of the Kimpton Hotel Monaco Chicago in downtown Chicago in January, roughly 35% of the appraised value of the hotel. $ 56 million hotel in 2013.
The 190-room boutique hotel is nestled along the Michigan Avenue and State Street shopping districts as well as the Riverwalk.
The Lotte hotel renews its expansion in the United States stuck in the pandemic environment.
On becoming the new owner of the New York Palace in 2015, the Midtown Manhattan hotel changed its nameplate to Lotte New York Palace. The 909-room Madison Avenue luxury hotel – founded in 1882 — is a landmark in New York City.
Lotte New York Palace displayed a relatively high occupancy rate even in a Covid-19 environment. The hotel was named one of New York’s Top 10 Hotels in 2017 by global travel magazine Travel + Leisure. It was also selected as the third best hotel in New York for 2018 by US News & World Report.
In 2019, the Lotte Hotel jointly purchased a hotel in downtown Seattle and has been registered since September of last year as the Lotte Hotel Seattle.
By adding the Kimpton Hotel Monaco Chicago, Hotel Lotte would manage four hotels in the United States, including one in Guam.
The company operates 12 hotels and resorts outside of Korea, including in Moscow, Russia, Hanoi, Vietnam, New York and Guam. Hotel Lotte was the first Korean hotel chain to enter Moscow abroad in 2010.
Hotel Lotte is actively pursuing the so-called “asset light” strategy for its acquisitions. It creates a joint purchasing consortium and operates hotels on the basis of its know-how at a lower cost.
The company is the manager of four hotels – Lotte City Hotel Tashkent Palace in Uzbekistan, Lotte Hotel Yangon in Myanmar, Lotte Hotel Samara in Russia and Lotte Hotel Seattle.
The global expansion aims to enhance the value of the Hotel Lotte business to facilitate its IPO.
During its regular executive reshuffle, the Lotte Hotel appointed former Nolboo CEO Ahn Se-jin as the new leader of the hotel business, clearly indicating its intention to go public. As a strategist and expert in the new line of business, Ahn has shown notable achievements in business efficiency.
The IPO also aims to redefine its image as a Korean entity.
The Lotte Hotel is part of the corporate governance structure of the Lotte Group, whose shares are held by the Japanese company Lotte Holdings Co.
The corporate governance structure has misled that Lotte is a Japanese group, an anonymous industry official said. The IPO of the Lotte hotel would help shed its image as a Japanese entity and strengthen control of the group by Lotte Group chairman Shin Dong-bin, the official added.
By Hong Sung-yong and Lee Eun-joo
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