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South Korea's Lotte Group Inks Deal To Acquire Landmark NYC Hotel For $805 Million
Tom Burroughes
1 June 2015
In one of the largest deals involving an Asian business tycoon and a US property, South Korea’s Lotte Group has agreed to buy the New York Palace Hotel in Manhattan for $805 million from the real estate management firm Northwood Investors. Lotte Group, which covers sectors ranging from hotels to candy, is handling the acquisition via its Hotel Lotte Co Ltd unit. The deal involves creating a new company that will acquire and operate the New York hotel, Reuters reported. The transaction is an example of how Asia-based investors continue to be prominent buyers of Western real estate. The South Korean company has been opening and buying hotels in Russia, Vietnam, Uzbekistan and Guam since 2010. It is also in the process of building hotels in China and Myanmar. The takeover is due to be complete by the end of August this year, subject to the necessary regulatory requirements. It was reported that Hotel Lotte is to become South Korea’s first brand hotel to operate on the main street of Manhattan in New York City. Lotte Group is headed by Dong Joo Shin, a billionaire. His family has been roiled by arguments over control of the business empire. Lotte Group was founded in 1948.