Lotte Group has expanded its interests in the hotel sector with the development of the Lotte Hanoi Hotel and acquisition of the Lotte Saigon.

With the opening of Lotte Hanoi Hotel, the group aims to become a leading Asian hotel owner.

According to Lee Jung Youl, general director of Lotte Hotels & Resorts Vietnam cum deputy chairman of Lotte Group, although the global economy is facing many difficulties, the newly-opened Lotte Hanoi Hotel still has much potential.

The $92 million Lotte Hanoi Hotel is located at the Lotte Centre Hanoi, right next to the Korean-owned Daewoo hotel.

“I believe that it is high time for high-end hotel development in Vietnam, especially the five-star hotel segment, since Hanoi and Vietnam are integrated into the global market and are also attracting a strong flow of FDI, foreign tourists and businessmen, while Vietnam lacks high-end hotels,” Youl claimed.

Lotte Group expects to see profits from the Hanoi Lotte Hotel within three years of operation.

Lotte have not stood still, as the group recently unveiled its second property development in Vietnam with the announcement of the Lotte Consortium – a joint venture between Korea’s Lotte and Japanese investors –to develop a new development in Ho Chi Minh City.

The $2 billion complex is planned for the Thu Thiem New Urban Area in Ho Chi Minh City’s District 2. Lotte has said it plans for the complex to be a landmark of the city and South East Asia.

According to Kim Min Geun, vice president, head of Overseas Mixed Used Development Division of Lotte Asset Development, Lotte Centre Hanoi and the group’s Thu Thiem development are key in the company’s Vietnam development plans and Lotte aims to lead international development in the future with its expertise in mixed-used development.

The Ho Chi Minh City development is will be a commercial and residential centre with multiple shopping complexes, hotels, serviced residences, offices and apartments.

Lotte is also keeping its eyes open for potential buy-outs.

The group paid $62.5 million to acquire the five-star Legend Hotel Saigon from fund management company VinaCapital over a year ago.

In order to upgrade the hotel, Youl said the hotel’s entire infrastructure was renovated and the staff were sent to Korea for re-education.

Disclosing its ambitious plans to expand its hotel business in Vietnam, Youl said in the coming time Lotte was still eager to pick up hotels which could meet its exacting standards.