Lotte Hotel Leading K-Hotels... Opens 'L7' in Chicago, USA (Comprehensive)

US Completes Acquisition of 'Kimpton Hotel Monaco'... Targeting Home Market with L7 Brand
'K-Hotel' Connecting East (New York) - Central (Chicago) - West (Seattle)
Full-Scale Expansion into Overseas Markets Including US, Asia, and Europe

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

◇ 'L7' Takes First Step in Chicago, USA

On the 17th, Lotte Hotel announced the completion of the acquisition of the ‘Kimpton Hotel Monaco’ in Chicago, USA. The acquisition was carried out through a joint investment with the Korea Overseas Infrastructure & Urban Development Corporation (KIND). The acquisition price was approximately 36 million USD (about 43 billion KRW). It is scheduled to open under the L7 brand in the second half of next year.

Since its debut in 2016 with ‘L7 Myeongdong,’ L7 hotels have attracted attention by introducing a new concept of ‘lifestyle hotels’ in the domestic hotel market, which was mainly focused on business hotels. It is characterized by unique interior design and services. A Lotte Hotel official said, "We decided to enter the U.S., the home of lifestyle hotel brands, because we believe L7 has sufficient competitiveness and potential there," adding, "This will also help expand consignment operations based on a diverse brand portfolio in the future."

‘L7 Chicago’ is located about 25 km (30 minutes by car) from O'Hare International Airport in the bustling downtown area of 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 concept.

◇ Expanding to 13 Overseas Locations... Accelerating Growth

Following last year’s regular executive appointments, Lotte Hotel CEO An Se-jin, who became head of the Lotte hotel group (HQ), identified ‘accelerating global growth’ based on strengthening brand competitiveness and hotel operation capabilities as a key goal for this year.

Since entering Moscow, Russia in 2010, Lotte Hotel has been operating 12 hotels and resorts in the U.S., Vietnam, Japan, Myanmar, Uzbekistan, and other countries. Starting with ‘L7 Chicago’ this year, the company plans to accelerate overseas expansion in preparation for the post-COVID-19 era. Jim Petrus, head of the Americas division, previously stated, "We plan to increase the number of hotels in North America to 20 within the next five years."

The existing overseas headquarters have been subdivided, and at the end of last year, a general management system was established for Asia and Europe following the Americas. The company aims to expand not only into emerging Asian countries but also into Europe. The overseas market brand portfolio will also be diversified. In 2025, Lotte Hotel’s top-tier brand ‘Signiel’ is scheduled to enter Hanoi, Vietnam.

CEO An said, "Following the U.S. East Coast’s ‘Lotte New York Palace’ and the West Coast’s ‘Lotte Hotel Seattle,’ the L7 brand’s entry into Chicago, a representative city in the Midwest, has opened a new chapter in the history of ‘K-Hotels.’ We will intensify our efforts to target overseas markets based on a diverse brand portfolio going forward."