Highgate to Manage Lotte New York Palace, Broadening Asian Partnership

Highgate, the hospitality investment and management platform, and Lotte Hotels & Resorts, the global arm of South Korea's Lotte Corporation, announced a significant strategic partnership effective June 4, 2026. This collaboration includes Highgate assuming management of the 909-room Lotte New York Palace Hotel, a move set to take effect in June 2026.

Lotte will retain full ownership of the Palace, a property they acquired in 2015 as their initial North American venture. Highgate's responsibilities will encompass day-to-day operations, revenue management, sales, marketing, and labor relations, with the transition process already underway.

The Lotte New York Palace Hotel holds considerable historical significance within Manhattan. It integrates the landmarked Villard Houses, originally commissioned in 1882 and designed by McKim, Mead & White. The modern 55-story tower, added in 1981, established the hotel as a premier destination for global dignitaries and business leaders.

Lotte's commitment to the property was further solidified by their recent purchase of the underlying land from the Archdiocese of New York. The hotel's prime Midtown Manhattan location, directly opposite St. Patrick's Cathedral and near Rockefeller Center, ensures its continued prominence.

Our take: This partnership represents more than just a management agreement; it signals an interesting convergence of East Asian luxury hospitality and established American operational prowess. For Lotte, leveraging Highgate's extensive New York City footprint could streamline operations and enhance market penetration. For Highgate, adding such a prominent luxury asset further diversifies their portfolio and expands their influence within the high-end sector, particularly through the broader Asian collaboration.