Source: LOTTE Hotels & Resorts
  • HOTEL LOTTE’s hotel division merges resort division to enhance competitiveness
  • Leverage expected on performance rebound with optimized portfolio
  • Seek asset efficiency through main businesses’ strengthened connectivity

HOTEL LOTTE’s hotel division (LOTTE HOTELS) merges resort division (LOTTE RESORT), and is reorganized as a single division. Due to this, HOTEL LOTTE is to transform from the current four divisions – hotel/duty free/world/resort - to three divisions - hotel/duty free/world – and to get ready for future projects. It is interpreted that two similar businesses were integrated to boost management efficiency, and to raise hospitality competitiveness as Korea’s biggest hospitality group.

COVID-19 coming to an end

LOTTE HOTELS and LOTTE RESORT sales revenue marked $0.74 billion USD in 2019, the biggest annual profit ever. Just about to make the largest annual revenue in Korea, the pandemic struck.
However, with the long pandemic coming to an end, the global travel market is showing a gradual recovery. Indeed, LOTTE HOTELS and LOTTE RESORT have recorded $0.59 billion USD cumulative sales up to the third quarter, which is almost close to the previous performance and are expecting positive figures.
As the performance for hotels and resorts is predicted to break the highest record in a near future, HOTEL LOTTE is to enhance operational efficiency through integration and activate global and domestic investment which were delayed during the pandemic. It is also predicted that the integrated single division would effectively respond to the ascending market trend.

New ways with brand portfolio optimization

The merger of LOTTE HOTELS operating 29 chains in and outside Korea, and LOTTE RESORT operating three resorts and golf clubs domestically allows them to become a hotel group with 11,000 rooms internationally.
The merged division has total of five brands which are, SIGNIEL, LOTTE HOTELS, LOTTE City Hotels, L7 HOTELS, and LOTTE RESORT. Nonetheless, compared to other global hotel chains, the status quo is difficult to meet various guests’ needs.
LOTTE HOTELS and RESORTS clarified that the company will launch new brands in the future after the merger and that they will break away from the previous industry customs for new businesses.
Apart from the hospitality industry, LOTTE HOTELS have already showcased the senior residence brand ‘VL’ in the first half of the year. Starting from being entrusted to operate ‘VL LHOUR’ in Busan, the first VL-branded residence in the southern part of the country, the hotel plans to expand the business in the future.

About LOTTE Hotels & Resorts

LOTTE Hotels & Resorts are currently in operation of 18 properties across five countries globally and have 16 more properties in the pipeline. LOTTE Hotels & Resorts have secured their brand equity by way of their award-winning Five Star properties. Their first luxury and overseas hotel from Korea's hotel brand in Russia has been in the spotlight after being recently awarded with the Prix Villegiature Awards 'Best Hotel in Europe'. LOTTE Hotels & Resorts has gained worldwide recognition for its excellent service and facilities suitable for major international events. It has also been rated as the best hotel in Korea by numerous prestigious magazines, including Conde Nast Traveler, Global Traveler, Business Traveller (Asia Pacific), and Trade Travel Gazette.