South Korea’s Lotte Hotels & Resorts has agreed a new strategic alliance, aimed at sharpening operational efficiency as it grows its business internationally.
The company is to partner with well known hotel management specialist Highgate, across a broad spectrum of operations. The pair aim to work together on hotel management, technology and marketing, and the development of skilled people across the globe, with a focus on the Americas, and Asia. The partnership is kicking off with immediate effect, as Highgate takes over day to day management of the Lotte New York Palace hotel.
Supporting a Landmark Hotel
For customers, there will be no obvious change at the 909 room Lotte New York Palace, a landmark luxury property on the city’s Madison Avenue. And for Highgate, it will mean the addition of one more local hotel to its management roster. The company is already the largest owner and operator of hotels in New York City. Highgate will run the property day to day, covering everything from staff management though sales, marketing and revenue management.
Lotte acquired the hotel in 2015, as its first venture into the US market. More recently, the company purchased the freehold land asset beneath the property, from the Archdiocese of New York, a clear signal that Lotte expects to hold the asset for the long term.
Since picking up the Palace hotel, Lotte has added three further US hotels. These are The New Yorker Hotel, an art deco landmark that is already operated by Highgate. In Seattle, there is the Lotte Hotel Seattle, a hotel designed by renowned stylist Philippe Stark, while the fourth hotel, in Chicago, operates under Lotte’s L7 brand.
“Lotte is one of the great hospitality and consumer companies of our era, and the opportunity to build a long-term, multi-platform relationship with an organization of its calibre and ambition is rare,” commented Richard Russo, principal at Highgate. “The broader collaboration across hotels, distribution, technology, and the wider business ecosystems both companies bring is where the long-term value for both Highgate and Lotte will be created.”
Lotte continues to look for international expansion opportunities. Later in 2026, it will open Lotte Hotel Sochi, on the Black Sea coast. The five storey property will have 181 rooms, with guests enjoying their own private beach.
Lotte Expands L7 Brand
And a second US destination for the L7 brand is planned in Westfield, Indiana. A 228 room luxury hotel will be developed for opening during the first half of 2028. L7 Westfield by Lotte is being designed by architects Andmore Partners with an elegant, curved facade.
Highgate, meanwhile, is busy supporting a growing number of hotel brands around the globe. The company is currently working with sector visionary Ian Schrager, completing a hotel transformation to deliver the PUBLIC Hotel West Hollywood, a 139 room property in California that will reveal Schrager’s latest innovations in the hotel space. The property is expected to open in the coming months.
