Lotte Hotel to Enter US Chicago Market with Brand 'L7'

US Completes Acquisition of 'Kimpton Hotel Monaco'
L7 Selected as Entry Brand, Targeting Lifestyle Hotel Hub
'K-Hotel' Connecting East (New York) - Central (Chicago) - West (Seattle) Regions

Lotte Hotel 'L7 Chicago' site (Kimpton Hotel Monaco).

[Asia Economy Reporter Yuri Kim] Lotte Hotel's lifestyle hotel brand 'L7' is entering the U.S. market.

On the 17th, Lotte Hotel announced that it had completed the acquisition of the 'Kimpton Hotel Monaco' in Chicago, USA, on the 14th (local time). The acquisition was carried out through a joint investment with KIND (Korea Infrastructure & Urban Development Corporation), which supports South Korea's overseas investment and development projects. The acquisition price was approximately $36 million (about 43 billion KRW).

The brand to be launched is L7. It is scheduled to open in the second half of next year. The L7 hotel, which first debuted in 2016 as 'L7 Myeongdong,' made headlines by introducing a new concept of 'lifestyle hotel' in the domestic hotel market, which had been centered on business hotels.

A lifestyle hotel is a concept derived from boutique hotels that differentiate themselves from large hotels through unique interiors and services. It reflects the culture of the location to propose a new lifestyle to customers. Starting with Ace Hotel, which opened in Seattle, USA, in 1999, a lifestyle hotel boom has occurred mainly in major cities such as New York and LA.

Lotte Hotel stated, "We made this decision because we believe that L7 has sufficient competitiveness and potential even in the U.S., the birthplace of lifestyle hotel brands," adding, "It will also help expand management contracts based on a diverse brand portfolio in the future."

They explained that Chicago's urban appeal was also a factor in deciding to enter the city. Chicago is a representative tourist city in the U.S. that attracted 60 million visitors annually before COVID-19. Recently, with policies fostering the IT industry, startups and venture capital have rapidly grown, transforming it into a vibrant young city. A Lotte Hotel official emphasized, "Chicago, known as the city of architecture, culture, and jazz, with its attractive local culture, is the optimal city for L7 Hotel to enter."

Sejin Ahn, CEO of Lotte Hotel, said, "Following the East Coast's 'Lotte New York Palace' and the West Coast's 'Lotte Hotel Seattle,' the L7 brand's entry into Chicago, the representative city of the Midwest, opens a new horizon in the history of 'K-Hotels,'" adding, "We will accelerate our overseas market expansion based on a diverse brand portfolio."

Meanwhile, L7 Chicago is located about 25 km (30 minutes by car) from O'Hare International Airport in downtown Chicago. Major Chicago attractions such as Millennium Park and the Chicago River are all within a 20-minute walk. The 13-story building has a total of 191 rooms (including 22 suites), one food and beverage outlet, and three banquet halls. It plans to undergo renovations to embody L7's unique lifestyle.