Lotte Hotel signs licensing deal for Sochi property

Industry

Published: 16 Feb. 2022, 15:54

Lotte Hotel signs licensing deal for Sochi property

A rendering of the Lotte Hotel Sochi, set to open in 2025. [LOTTE HOTELS & RESORTS]

Lotte Hotel Sochi will open in 2025, Korea’s first hotel to be operated abroad in a licensing deal.

Lotte Hotels & Resorts announced Wednesday it signed a deal with Moscow-based construction company Metropolis on Jan. 31.

Well-known hotel brands like Hyatt and Hilton operate many hotels abroad through licensing deals, but Lotte Hotel Sochi is the first such deal signed by a Korean company.

The newly built hotel will be owned by Metropolis and operated by Moscow-based hospitality company LeePrime. Lotte Hotels & Resorts will provide its brand name and set service standards for the hotel to follow in exchange for a fee.

The hotel company said its experience running four five-star hotels in Russia — Lotte Hotel Moscow, Saint Petersburg, Vladivostok and Samara, all owned and operated by the company — helped land the deal with Metropolis.

Lotte Hotel Sochi will be a five-minute walk from Riviera Park, an amusement park in the central district of Sochi, according to the company. It will have five floors, 181 rooms and a private beach.

“We are proud that Lotte Hotel has become a brand name that people abroad are recognizing,” said Ahn Se-jin, CEO of Lotte Hotels & Resorts. “We will continue to target the global market by implementing efficient business strategies such as licensing deals.”

The company has been expanding its business abroad. It acquired the Kimpton Hotel Monaco Chicago in January and is currently renovating it to become an L7 hotel, one of its boutique hotel brands.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]