REBusinessOnline

LOTTE Group Buys New York Palace Hotel for $805M

NEW YORK — The LOTTE Group has purchased the 909-room New York Palace Hotel in Midtown for $805 million. The hotel is located on the corner of 50th Street and Madison Avenue. It is situated across from St Patrick’s Cathedral.

The New York Palace underwent a $160 million redesign in fall 2013. It included new lobbies and specialty suites, 24,000 square feet of refreshed event space and improvements to the property’s restaurants and lounges.

The acquisition also includes Villard Mansion, which was originally constructed in 1884. The property runs from 50th to 51st Street on Madison Avenue. It was restored concurrently with the adjacent New York Palace.

The New York Palace has been featured on the television show “Gossip Girl.” It has also hosted Tony Award parties, New York Fashion Week events and holiday tree lightings with Miss America.

The hotel will be operated by Hotel Lotte Co Ltd, a new company that was formed after the Palace was purchased. It will now be known as Lotte New York Palace.

The LOTTE Group is one of the largest Korean conglomerates. Its revenue in 2013 was $74 billion.

This acquisition marks the largest single American asset acquisition by a Korean company, according to Hodges Ward Elliott, which executed the transaction. The seller was Northwood Investors.

Content Partners
‣ Arbor Realty Trust
‣ Bohler
‣ Lee & Associates
‣ Lument
‣ NAI Global
‣ Northmarq
‣ Walker & Dunlop

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