Lotte hotel projects suspended in China: Company executive

By Yu Xi and Xie Jun Source:Global Times Published: 2017/8/8 17:23:39

Some of Lotte Group's hotel expansion plans are currently suspended in China, a senior executive of the Lotte China told the Global Times on Tuesday.

The executive, who wished to remain anonymous, also stressed that China has always been Lotte's "most important" overseas market and that the company has "never swayed" on this point.

According to the executive, Lotte China, headquartered in Shanghai, currently has four hotel projects in China. Construction of two of them, one in Shenyang, capital of Northeast China's Liaoning Province, and one in Chengdu, capital of Southwest China's Sichuan Province, are suspended. The two projects are entirely invested by Lotte alone. Lotte China didn't explain the reason for the suspension.

According to a report by the South Korea-based Aju Business Daily on Monday, the Shenyang hotel, which will contain 530 rooms, is expected to open in November 2019.

Lotte is also discussing with third parties on two other hotel projects, both in East China's Shandong Province, the executive said, adding that concrete time to launch the projects has not been yet decided.

Lotte plans to open new hotels and resorts in a number of overseas markets including Russia and Japan in the second half of this year, according to overseas media reports. The company plans to open 1,000 hotels globally by the end of 2050.

"Lotte has not yet decided on development plans in China. But I think that Lotte's development in China should hinge on the market, and we will make plans based on market changes in China," the executive told the Global Times on Tuesday.

The executive also confessed that Lotte's business has been sliding hard in China since the second quarter of 2017, especially in the retail sector.

Lotte's business in China has been battered a lot in recent months after it pushed ahead with a land swap deal in February to let US troops install the THAAD missile defense system in South Korea, according to media reports.

Posted in: COMPANIES

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