[THE INVESTOR] Hotel Lotte has resumed its long-delayed Chinese project in Yantai, Shandong province, which was suspended for four years.
In 2014, Hotel Lotte first signed a hotel management agreement with a local operator, as per which it would be in charge of all operations and provide its brand for a commission. The five-star hotel in Yantai was originally set to start operations in June 2016. This will be the first hotel in China that is operated under Hotel Lotte’s brand name.
“The hotel owner had some problems so the project was delayed. We resumed the project recently and are currently preparing to start operations from 2020,” Hotel Lotte Spokesperson Min Ji-ho told The Investor. “The delay was due to the hotel owner’s own problems and not related to the Chinese government’s permission.”
The company strongly denied speculation that the business was suspended by the Chinese government in retaliation against the deployment of the THAAD missile defense system. Lotte had been the main target of Chinese government since it offered its golf course for the THAAD site.
This is the third project that Hotel Lotte is running for hotel owners overseas. In 2013, the Korean company began operating Lotte City Hotel Tashkent Palace for an Uzbekistan owner and also started operating Lotte Hotel Yangon in Myanmar last year.
By Song Seung-hyun (firstname.lastname@example.org)