Lotte Group to acquire site of Lotte New York Palace hotel for $490 million

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Lotte Group to acquire site of Lotte New York Palace hotel for $490 million

Published: 15 Dec. 2025, 14:01 Updated: 15 Dec. 2025, 19:27

Audio report: written by reporters, read by AI

The Lotte New York Palace hotel [LOTTE]

Lotte Group will acquire the site of the hotel Lotte New York Palace in Manhattan for $490 million as part of broader efforts to secure long-term operational stability for the hotel and strengthen its global brand value, Lotte Hotels & Resorts announced on Monday.

Lotte Hotels & Resorts acquired the five-star then-New York Palace Hotel in Manhattan in 2015. However, it only purchased the building and has continued to pay rent to the Archdiocese of New York, which renews the ground lease every 25 years.

Lotte Hotels & Resorts plans to finance the land acquisition by liquidating assets and attracting outside investors. The company said it aims to secure long-term operational stability for Lotte New York Palace and strengthen its brand value through full ownership of the site.

“Acquiring the Lotte New York Palace hotel site will mark an important turning point in expanding our global business and enhancing brand value,” a Lotte spokesperson said. “We will continue working to establish ourselves as a leading global hotel brand.”

U.S. media have reported that the Archdiocese of New York decided to sell the hotel site to raise funds for compensation payments to victims of clergy sexual abuse.

The archdiocese plans to allocate $200 million of the sale proceeds toward the victims and use the remaining funds to repay loans previously taken out to cover settlement payments.

The transaction requires final approval from the New York Supreme Court before it can be completed.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KANG KI-HEON [[email protected]]