South Korea Lotte Hotels targets 20 properties in Japan in a decade

Lotte Hotel & Resorts is doubling down on its global ambitions. It has set up a new joint venture in Japan alongside Lotte Holdings, the Japanese arm of the South Korean conglomerate.

The partnership, formalized at a ceremony in Shinjuku on September 2, marks a major step in the group’s broader “One Lotte” strategy to align businesses across borders.

The new entity, Lotte Hotels Japan, will initially oversee the joint operation of Lotte Arai Resort and Lotte City Hotel Kinshicho. Both properties have until now been managed separately by the two companies.

It will also spearhead the development of new properties in Japan. Plans foresee an international expansion through an “asset-light” model centered on franchising and management contracts.

That approach—already tested with The New Yorker Hotel by Lotte in New York—reduces the need for heavy capital investment. At the same time, it will accelerate scale. CEO Jung Ho-seok said the strategy is designed to position Lotte as “Asia’s top global hotel operator within the next 10 years.”

Newly appointed Lotte Hotels Japan CEO Tomoya Fukui added that the JV aims to redefine hospitality in Japan. The company wants to offer experiences that go beyond traditional accommodation. The plan foresees 20 hotels in the Japanese market by 2034, representing a total of 4,500 rooms. Thematically, the hotels will mostly focus on wellness.

A new era of cooperation between South Korea and Japan

The move comes as Lotte Group grapples with headwinds in its petrochemical business and sluggish domestic demand in South Korea.

Analysts say the hotel JV could become a blueprint for further cross-border integration if it manages to balance speed with brand consistency and operational quality. Strengthening digital platforms—such as reservation systems and global membership programs—will also be critical to capturing demand.

The partnership is the latest in a string of cross-border ventures between Lotte affiliates in Korea and Japan. It spans duty-free retail, food products, biotech, and venture capital. Lotte Duty Free already runs a store in Tokyo’s Ginza. Food subsidiaries have also engaged in cross-selling popular Korean and Japanese snacks.

Lotte Chairman Shin Dong-bin has framed such initiatives as part of the “One Lotte” vision. He is urging closer cooperation between the Korean and Japanese arms of the group.