Lotte Hotels & Resorts and Highgate have entered a strategic partnership under which the latter will take over management of the 909-room Lotte New York Palace Hotel, beginning this month.
The companies jointly announced the arrangement, which forms part of a wider collaboration covering hotel operations, distribution, technology, and talent development in the Americas and Asia.
Under the agreement, Lotte Hotels & Resorts will retain full ownership of Lotte New York Palace while Highgate will be responsible for day-to-day operations, labour relations, marketing, revenue management, and sales.
Preparations for the operational transition are already under way, although the Palace will continue to operate under its existing Lotte New York Palace brand.
The Lotte New York Palace Hotel is located across from St Patrick's Cathedral in Midtown Manhattan and adjacent to Rockefeller Center.
Originally opened in 1981, the 55-storey property was acquired by Lotte Hotels & Resorts in 2015, marking the company's entry into the North American market. Lotte later purchased the underlying land from the Archdiocese of New York.
Lotte Hotels & Resorts operates more than 40 properties in countries, including Japan, Korea, Vietnam, Myanmar, Russia, the US, and Uzbekistan.
The partnership between Lotte and Highgate also aims to integrate hotel management, drive global distribution across direct and third-party channels, and collaborate on technology initiatives such as revenue management systems and AI applications.
A formal talent exchange and secondment programme will allow executives and operators to rotate between the companies’ properties and offices internationally.
Highgate principal Richard Russo said: “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 organisation of its calibre and ambition is rare.
“What gives this relationship its foundation are the core tenets that both companies share: an entrepreneurial, principal-led culture; a willingness to invest deeply in our people, in our technology, and in our operating discipline; and a commitment to building for the long term.”
