LOTTE HOTEL to debut in Sochi after franchise deal
LOTTE HOTEL announced on February 16 that it had signed a franchise agreement with Russian construction company Metropolis LLC to operate a hotel in Sochi, Russia. Hereby, the 5th LOTTE HOTEL in Russia is scheduled to open in 2025 in Sochi, the former host city of the Winter Olympics.
This is LOTTE HOTEL’s first franchise agreement and was signed by Heeyoung Park, General Manager of LOTTE HOTEL VLADIVOSTOK and Anna Nevzorova, Director of Metropolis LLC on January 31, 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, usually 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 this is a business model to effectively expand the brand and generate profits without too much investment, it is a difficult strategy for hoteliers to implement. companies that lack brand power.
LOTTE HOTEL explained that the deal could be made possible because their expertise in operating four five-star hotels in Russia’s major cities – Moscow, St. Petersburg, Vladivostok and Samara – was highly valued.
LOTTE HOTEL began its global expansion in 2010 with the opening of LOTTE HOTEL MOSCOW, as the first Korean hotel brand to directly establish and manage an international chain. In addition, the company has broadened the prospect of Korean hospitality by launching chain hotel operations in Uzbekistan and Myanmar, as well as being awarded the operation of a hotel in the United States. in its 12th 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 the greatest getaway in Russia since various water and winter sports can be practiced.
Lotte Hotel Sochi
Sochi, Russian Federation