Actions for the Future
Starting with the opening of “Lotte Hotel Vladivostok,” which is the only five-star hotel in Maritime Province in Russia, Hotel Lotte Co. is expanding its business in Russian Far East. To this end, it is considering operation of two additional hotels in the region.
According to Hotel Lotte on August 7, the company has decided to additionally operate 3- to 4-star hotels in Maritime Province, such as Khabarovskiy Kray and Ussuriysk which are close to train stations in Vladivostok. Hotel Lotte opened “Lotte Hotel Vladivostok” last month. The new hotel was renovated after Hotel Lotte acquired Hyundai Hotel from Hyundai Heavy Industries Co.
Hotel Lotte has been targeting Maritime Province because it believes that this region can obtain the greatest benefits from “Najin-Hassan project,” a three-way economic cooperation project pursued by South Korea, North Korea and Russia, when the relations with North Korea improve. Lotte Group Chairman Shin Dong-bin has been also considering Russia one of strategic key points of itsoverseas business and seeking for business opportunity.
Currently, Hotel Lotte runs four hotels in Russia, including “Lotte Hotel Vladivostok.” The brand awareness of Lotte Hotel is also improving in Russia. Lotte Hotel in Moscow, which has been open since 2010, received “Condé Nast Traveler” award just in two years after the opening. In addition, Lotte Hotel in Saint Petersburg, which has been open since September last year, is establishing a solid foothold in the Russia market with Korean-style services.
Hotel Lotte said that Lotte Hotel in Vladivostok, which has been recently open, also records at nearly 90 percent of room occupancy rate with the peak of the summer tourist season. Russian and Korean customers account for 45 percent and 40 percent of the total, respectively. Its sales has already increased 10 percent from a year earlier. Lotte Hotel in Vladivostok has various facilities in its 12-story building with 153 rooms including three restaurants, four banquet halls, a swimming pool, a sauna and a fitness center.