Lotte Hotels & Resorts has acquired the land site of “The New York Palace Hotel” (photo), following its purchase of the building. Lotte Hotels announced on the 15th that, after prolonged negotiations with the Archdiocese of New York, it completed the land acquisition deal for USD 490 million (approximately KRW 700 billion).

Previously, in 2015, Lotte Hotels acquired The New York Palace Hotel, a symbol of Manhattan and New York’s first five-star hotel, and reopened it under the name “Lotte New York Palace.” At that time, it purchased only the building and leased the hotel site. Because the hotel site was owned by the Roman Catholic Archdiocese of New York, the lease fee had to be renewed every 25 years.

A Lotte Hotels representative stated, “With this land acquisition, the company has resolved the risk of rent increases,” adding, “We are in the process of securing funding by liquidating existing assets and attracting external investment.”

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