US/South Korea: Lotte Hotels & Resorts, the global hospitality arm of Lotte Corporation, and owner-operator Highgate, have entered into a strategic partnership that will see Highgate assume management of the Lotte New York Palace Hotel.
The Palace will continue to operate under the Lotte New York Palace flag, with Lotte retaining full ownership of the asset. Highgate will assume day-to-day operations, revenue management, sales, marketing, and labour relations effective June 2026.
Originally built in 1882 as six private residences known as Villard Houses, the site was transformed in 1981 with the addition of a 55-storey tower that collectively became the luxury hotel Helmsley New York Palace.
Lotte Hotels & Resorts acquired the Palace in 2015, marking its first North American investment. In 2025, Lotte purchased the underlying land from the Archdiocese of New York.
In addition to Lotte New York Palace Hotel, the company has three other properties in the United States – one of which, The New Yorker Hotel by Lotte Hotels, is operated by Highgate.
Now, in North America, Highgate will serve as a preferred operating partner for additional Lotte-affiliated hotel assets. In Asia, Highgate will partner with Lotte on opportunities where Highgate’s lifestyle and luxury operating platforms and its principal investment capabilities can be deployed.
The two companies will also:
- Channel outbound Korean and broader Asian travel into Highgate’s gateway portfolios across the Americas and Europe, with reciprocal direction of North American and European demand into Lotte’s Asia-Pacific assets
- Jointly develop and deploy revenue management and demand-forecasting systems, as well as collaborate on artificial intelligence applications across back-of-house and guest-facing personalisation
- Establish cross-training for executives and operators to rotate between Highgate and Lotte properties and corporate offices across markets
Richard Russo, principal at Highgate, 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 caliber and ambition is rare.
“What gives this relationship its foundation are the core tenants 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.
“The broader collaboration across hotels, distribution, technology, and the wider business ecosystems both companies bring is where the long-term value for both Highgate and Lotte will be created. We approach this significant partnership with excitement and admiration.”
Highlights:
- Lotte Hotels & Resorts and Highgate have formed a strategic partnership, with Highgate assuming management of the Lotte New York Palace Hotel from June 2026.
- Highgate will oversee operations, revenue management, sales, marketing and labour relations at the luxury New York hotel, while Lotte retains ownership.
- The partnership establishes Highgate as a preferred operating partner for future Lotte hotel assets in North America and collaboration opportunities across Asia.
- Both companies will collaborate on hotel technology, revenue management, demand forecasting and artificial intelligence applications for operational efficiency and guest personalisation.
- The agreement also includes reciprocal travel distribution initiatives and executive cross-training programmes linking Lotte’s Asia-Pacific portfolio with Highgate’s Americas and Europe assets.
