LOTTE HOTEL to debut in Sochi after franchise deal
LOTTE HOTEL announced on February 16th that it has signed franchise agreement with Russian construction company, Metropolis LLC for hotel operation in Sochi, Russia. Hereby, the 5th LOTTE HOTEL in Russia is slated to open in 2025 in Sochi, the former winter Olympics host city.It is the first franchise agreement of LOTTE HOTEL, and was signed by Heeyoung Park, the gen eral manager of LOTTE HOTEL VLADIVOSTOK and Anna Nevzorova, the director of Metropolis LLC on January 31st 2022 (local time). The hotel is to be owned by Metropolis LLC and will be managed by LeePrime, the Moscow-based hospitality and residential service management company.In terms of franchising, generally entrusted to global hotel brands, the owner directly operates the hotel and receives the brand name and operation standards of a particular hotel brand in exchange for brand loyalty. For a hotel brand, although it is a business model to effectively expand brand and generate profit without much investment, it is a difficult strategy for companies that lack brand power to implement.LOTTE HOTEL explained that the agreement could be made possible since their competence for operating four five-star hotels in major cities in Russia - Moscow, St. Petersburg, Vladivostok and Samara - was highly evaluated.LOTTE HOTEL commenced its global expansion in 2010 with the opening of LOTTE HOTEL MOSCOW, as the first Korean hotel brand to establish and directly manage international chain. Furthermore, the company broadened the prospect of Korean hospitality by initiating chain hotel business in Uzbekistan and Myanmar, as well as by being entrusted to operate hotel in the U.S. With its competence acknowledged upon the franchise agreement, LOTTE HOTEL continues to accelerate as global leading hotel in its 12th year in global expansion.Sochi, the city with subtropical climate which could hardly be seen in Russia, is located in between the Black Sea and the Caucasus. The city is considered as the biggest getaway in Russia since various water and winter sports could be enjoyed.