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Lotte New York Palace Debuts in New York
Rebranding
Lotte New York Palace Debuts in New York
  • By Michael Herh
  • September 18, 2015, 07:00
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From left: John Tolbert, general manager of Lotte New York Palace; Fred Dixon, president of the city's tourism agency, NYC & Co; Kim Ki-hwan, consul-general at New York; Song Yong-deok, president of Lotte Hotel; and actress Brook Shields.
From left: John Tolbert, general manager of Lotte New York Palace; Fred Dixon, president of the city's tourism agency, NYC & Co; Kim Ki-hwan, consul-general at New York; Song Yong-deok, president of Lotte Hotel; and actress Brook Shields.

 

Lotte has thrown its hat into the New York ring to compete with other global hotels. The Korean company changed the name of the New York Palace Hotel in the center of Manhattan into Lotte New York Palace in order to start its full operations on Sept. 16 (local time). Lotte New York Palace is a landmark hotel in New York. The hotel boasts a main house of 733 rooms, which is a 55-story five-star hotel, a tower with 176 rooms, which is a six-star hotel, and 23 banquet halls.  Suite rooms on the 53rd to 55th floors cost travelers US$25,000 per night, each.  Lotte invested US$805 million in the acquisition of the hotel.

[[{"fid":"12828","view_mode":"body_image_left","fields":{"format":"body_image_left","field_file_image_alt_text[und][0][value]":"A view of the new Lotte New York Place hotel.","field_file_image_title_text[und][0][value]":""},"type":"media","attributes":{"alt":"A view of the new Lotte New York Place hotel.","height":600,"width":450,"class":"media-element file-body-image-left"},"link_text":null}]]“Lotte Chemical operates in the North American market. But the company does not use the Lotte brand,” said Song Yong-deok, president of the Lotte Hotel, who oversaw the signboard changing ceremony. “I think that if the New York Palace spreads good images of Lotte, it will help Lotte affiliates make a foray into the North American market. We decided to take over the hotel after not only checking the hotel, but its effects on the entire Lotte Group.”

International movers and shakers stay at world-class hotels. Their moves at such hotels make news, enhancing the reputations of the hotels. Lotte New York Place is now expanding its brand power on President Obama’s coattails. President Obama has decided to stay at the hotel during the upcoming U.N. General Assembly. Previously, U.S. Presidents have always used the Waldorf Astoria Hotel when they stay in New York. But China’s Anbang Insurance Group took over the Waldorf Astoria Hotel last year. Since then, the hotel has been under the influence of the Chinese government. 

The U.S. government and people expressed concerns that if President Obama checks into the Waldorf Astoria Hotel, he may be bugged and put under surveillance by China. The Lotte New York Palace has seized this opportunity to become the President’s Hotel amidst a war of nerves between the U.S. and China. The idea to build a brand based on the base hotel comes from the successful case of Lotte Hotel Moscow.

Lotte Hotel branched out to Moscow in 2010 and cemented its position, while outclassing rival hotels such as the Ritz-Carlton and the Hilton. This fact led to Lotte’s much larger share in the Russian chocolate pie market.  Good responses about Lotte Hotel in Moscow empowered Lotte Hotel to advance into other nations such as Uzbekistan (Tashkent), Vietnam (Hanoi and Ho Chi Minh City) and China (Shenyang and Yantai). Lotte is planning to apply Korea’s warm hospitality to the management of New York Palace. This may create another Korean wave in the world.