After 10 Years of Overseas Expansion... Lotte Hotel Lands on the US West Coast

Opening 12th Overseas Hotel Starting with No.1 Moscow
3rd in the US After New York and Guam
Competing with Detailed Services Like Mobile Check-in and Perfume

[Asia Economy Reporter Cha Min-young] Lotte Hotel, which first stepped into Moscow, Russia in 2010 as the first Korean hotel abroad, is set to unveil its twelfth hotel in the heart of Seattle, USA, ten years after its overseas expansion. It is noteworthy that the hotel now holds landmarks on both the East and West coasts of the United States and is the first Lotte Hotel to introduce a management contract operation method in the U.S. Despite the hotel industry facing its worst situation due to the COVID-19 pandemic, Lotte Hotel has shown an ambitious move to showcase differentiated services unique to Korean luxury hotels.

A New Landmark in Seattle, a Key Location in the U.S. West Coast

Lotte Hotel announced that it will open in Seattle, the largest city in the Northwestern United States, on the 24th (local time). This is Lotte Hotel’s twelfth overseas hotel and the third in the U.S. region following New York and Guam. The hotel is housed in a 44-story building, spanning from the 1st to the 16th floor, with a total of 189 rooms including 33 suites. The interior design is inspired by Seattle’s natural scenery, offering both ocean and city views. A high-end restaurant and the first-class spa brand 'Biologique Recherche,' which partners with 6- and 7-star global hotels, are also located within the hotel.

Originally, the opening ceremony was expected to be attended by key executives including Shin Dong-bin, Chairman of Lotte Group, and Kim Hyun-sik, CEO of Lotte Hotel, but the ceremony was canceled due to the COVID-19 pandemic. Kim Hyun-sik, CEO of Lotte Hotel, conveyed a message saying, "With pride as a hotel brand representing Korea, we will elevate the brand status of domestic hotels through Korean-style service that delivers emotional impact."

In selecting the hotel location, Seattle’s unique geographical advantages were a major consideration. Seattle is a historic hub for American logistics, travel, and business, equipped with a transcontinental railroad and an international airport. The downtown area and nearby regions where the hotel is located house headquarters of Forbes 500 companies such as Microsoft, Amazon, and Starbucks. The presence of many global companies like Apple, Disney, and HP also played a key role in attracting business customers. The hotel features a total of 12 meeting rooms and banquet halls equipped with the latest facilities, suitable for large-scale international conferences. However, unlike last year when the hotel investment was decided, the sharp decline in foot traffic due to COVID-19 remains a concern.

Preserving the Delicacy Unique to Korean Hotels

Lotte Hotel plans to realize customer satisfaction through its distinctive Korean-style service. This reflects the experience accumulated from operating overseas hotels including Lotte New York Palace. Representative services include mobile check-in allowing guests to check in leisurely while enjoying a welcome drink, perfume service when going out, and vehicle interior cleaning service. A Lotte Hotel official explained, "Such meticulous services have not been offered by existing Western-style hotels or other hotels around Seattle."

It is also notable as the first hotel in the U.S. mainland to operate under a management contract model. Lotte Hotel Seattle is a project jointly invested by Lotte Hotel and Hana Financial Investment in December last year. The hotel was acquired through a fund jointly invested by Lotte Hotel and Hana Financial Investment at a 3:7 ratio, reducing the burden of 100% hotel funding. Lotte Hotel will manage the hotel under a management contract for the next 20 years. While Lotte has managed hotels under contract in Russia, Vietnam, and Uzbekistan, this is the first time in the U.S. mainland. They plan to increase cases of management contracts leveraging the Lotte brand.

A Lotte Hotel official said, "Although it cannot be called a full management contract due to some equity investment, this is the first step. It reflects the group’s intention to expand hotel operations not only in Asia, where they have competitive advantages, but also simultaneously in developed countries such as Europe and the U.S."

Looking at Lotte Hotel overall, it has achieved 'economies of scale' by securing more than 10,000 rooms combined domestically and internationally. Lotte Hotel currently operates 20 hotels domestically and 12 overseas. Overseas, it operates hotels in Russia, Vietnam, the U.S., Uzbekistan, Japan, and other locations, totaling 3,881 rooms. Domestically, it holds 6,337 rooms including the 6-star brand Lotte Signiel. Including 787 rooms in three domestic resorts, the total number of rooms reaches 11,005.