"Endemic Effect" Hotel Lotte, Q3 Operating Profit 123.2 Billion KRW... Return to Profit (Comprehensive)

Q3 Consolidated Sales of 1.7 Trillion Won... 43% Increase
Duty-Free and Hotel Divisions Show Endemic Performance Improvement
"Expecting Expansion of Domestic and Foreign Tourist Demand in Q4"

Lotte Hotel Seoul.

[Asia Economy Reporter Yuri Kim] Hotel Lotte announced on the 14th that its consolidated operating profit for the third quarter of this year turned positive to 123.2 billion KRW compared to the same period last year. During the same period, sales increased by 43.54% to 1.7027 trillion KRW. Hotel Lotte consists of the duty-free business division, hotel business division, world business division, and resort business division.

Lotte Duty Free recorded an operating profit of 50.8 billion KRW in the third quarter, turning positive. Sales increased by 32.9% to 1.2766 trillion KRW. By strengthening marketing promotions, domestic sales grew by 150% compared to the same period last year. This year, they also attracted more than 10,000 group tourists from Southeast Asia. Lotte Duty Free explained that the rapid recovery and profitability of overseas business locations, including the largest overseas store at Singapore Changi Airport after the reopening (resumption of business), was an important factor in improving performance.

Lotte Duty Free plans to open an additional store in downtown Hanoi following the Danang downtown store in Vietnam, and the grand opening of the Changi Airport store is also scheduled, so global sales growth is expected to continue. Lotte Duty Free currently operates 13 stores in 6 overseas countries. A Lotte Duty Free official said, "We recorded a profit in the third quarter through revitalizing sales to both domestic and foreign customers and our own cost reduction efforts," adding, "We will achieve intelligent management efficiency to overcome external and internal adversities such as the global economic downturn and rising market interest rates and prepare for a leap forward."

Lotte Hotel also explained that sales have recovered to pre-COVID-19 levels. A Lotte Hotel representative said, "The recovery of the tourism industry has passed the inflection point, and sales recorded figures similar to those before COVID-19, with continuous recovery expected," adding, "We expect the recovery of foreign tourist demand along with domestic travel demand in the fourth quarter and plan to promote business activation."