LOTTE HOTELS and LOTTE RESORT Division Announce Merger
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 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 operation 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 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 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 entrust to operate ‘VL LHOUR’ in Busan, the first VL branded residence in southern part of the country, the hotel plans to expand the business in the future.
ABOUT THE CHAIN
Lotte Hotels & Resorts, the largest hotel group in Korea, is expanding beyond Asia to become a global brand.