LOTTE HOTEL to debut in Sochi after franchise deal

LOTTE HOTEL announced on February 16and that he has franchise agreement signed with a Russian construction company, Metropolis LLC for hotel operations Sochi, Russia. Hereby, the 5thand LOTTE HOTEL in Russia is expected to open in 2025 in Sochi, the former host city of the Winter Olympics.

This is LOTTE HOTEL’s first franchise contract, and was signed by Heeyoung Park, General Manager of LOTTE HOTEL VLADIVOSTOK and Anna Nevzorova, Director of Metropolis LLC January 31st 2022 (local time). The hotel will be owned by Metropolis LLC and managed by LeePrime, the Moscow-based hotel and residential services management company.

In terms of franchising, typically outsourced to global hotel brands, the owner directly operates the hotel and receives the brand name and operating standards of a particular hotel brand in exchange for brand loyalty. For a hotel brand, although it is a business model to effectively develop the brand and generate profits without much investment, it is a strategy difficult to implement for companies that lack brand power.

LOTTE HOTEL explained that the agreement could be made possible since their competence to operate four five-star hotels in major cities of Russia – Moscow, St. Petersburg, Vladivostok and Samara – was greatly appreciated.

LOTTE HOTEL began its global expansion in 2010 with the opening of the LOTTE HOTEL MOSCOW, as the first Korean hotel brand to directly establish and manage an international chain. Moreover, the society has broadened the perspective of Korean hospitality by launch of a hotel chain in Uzbekistan and Myanmar, as well as being responsible for operating a hotel in the United States. Backed by its skills recognized by the franchise agreement, LOTTE HOTEL continues to accelerate as the world leader in the hotel industry in its 12and year of global expansion.

Sochi, the city with a subtropical climate that can hardly be seen in Russia, is located between the Black Sea and the Caucasus. The city is considered Russia’s Greatest Getaway since various water and winter sports can be practiced.

LOTTE HOTEL SOCHI should open at the end of 2025, like a five star hotel. It will have a total of 181 rooms on its five-story building with private beach access. The hotel enjoys an excellent location being a five-minute walk from the Mall, the largest amusement park; Riviera Park, and the main tourist sites.

Sejin Ahn, CEO of LOTTE HOTEL said: “We are proud to become a brand whose loyalty others demand at the International scale. We plan to successfully target the global market through business models that maximize management efficiency, such as franchising.”

Meanwhile, LOTTE HOTEL currently operates 32 hotels in seven countries. With his Korean style hospitality service and brand portfoliothe hotel group meets the needs of different travelers – high-end hotel “SIGNIEL”, high-end classic “LOTTE HOTELS”, lifestyle hotel “L7 HOTELS”, optimized for business “LOTTE City Hotels” and “LOTTE Resort” for family travelers.

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