Lotte Hotels & Resorts and Highgate have entered into a strategic partnership that includes Highgate assuming management of the 909-room Lotte New York Palace Hotel on Madison Avenue. The agreement takes effect this month and also outlines collaboration between the companies in hotel operations, distribution, technology and talent development across North America and Asia. The hotel will continue operating as Lotte New York Palace with Seoul, South Korea-based Lotte retaining ownership of the asset. New York-based Highgate will oversee day-to-day operations, revenue management, sales, marketing and labor relations. Transition activities are already underway.
Lotte Hotels & Resorts acquired the hotel in 2015 as its first North American investment and subsequently rebranded it as Lotte New York Palace. More recently, the company acquired the underlying land from the Archdiocese of New York, giving it full ownership of the property. Located across from St. Patrick’s Cathedral, the hotel is also near Rockefeller Center and includes event spaces such as the Madison Avenue Courtyard and Gold Room.
The management agreement, meanwhile, expands Highgate’s presence in Manhattan, where the company operates a portfolio that includes luxury, lifestyle and select-service hotels. Recent additions to its New York portfolio include management of the InterContinental New York Times Square, operations at Public Hotel and the relaunch of The Row Hotel.
“Lotte is one of the great hospitality and consumer companies of our era, and the opportunity to build a long-term, multi-platform relationship with an organization of its caliber and ambition is rare,” Richard Russo, principal at Highgate, said in a statement. “We are deeply grateful that Lotte has entrusted the Lotte New York Palace Hotel, one of its most important assets, to our care.”
The property includes the landmarked Villard Houses, commissioned in 1882 by financier Henry Villard and designed by McKim, Mead & White in the Italian Renaissance Revival style. The 55-story tower opened in 1981 and established the hotel as a prominent luxury lodging destination in Manhattan.
Lotte Hotels & Resorts operates more than 40 hotels and resorts across Asia, Central Asia and the United States. Its U.S. portfolio includes Lotte New York Palace, The New Yorker Hotel by Lotte Hotels in Manhattan, Lotte Hotel Seattle and L7 Chicago by Lotte Hotels.
Beyond the New York Palace assignment, the companies said they plan to explore additional opportunities in North America and Asia. Areas of collaboration are expected to include hotel operations, global distribution, technology initiatives and employee development programs.
The partnership framework also calls for joint efforts in revenue management, demand forecasting, artificial intelligence applications and guest experience technology. The companies additionally plan to establish executive exchange and training programs between their respective organizations.