Lotte Hotels Purchased New York Palace Land

The hotel operator acquired the land underlying its Midtown Manhattan property for $490 million.

Updated on Oct. 3, 2026 in Commercial

Bold vector editorial illustration showing an ornate, historic hotel facade with intricate stone details, representing real estate investment. — Lotte Hotels & Resorts acquired the land beneath its New York Palace property in Manhattan from the Roman Catholic Archdiocese for $490 million. AI Illustration. Upload story photo >

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Lotte Hotels & Resorts has completed the purchase of the land beneath its New York Palace hotel in Manhattan. The company paid $490 million to the Roman Catholic Archdiocese of New York for the site.

Why it matters

The acquisition is intended to boost long-term brand value and asset growth for the company. By owning the land, Lotte expects to reduce its lease liabilities and improve future operating cash flow.

Lotte purchased the land for $490 million to consolidate ownership of the property. The Lotte New York Palace currently features over 900 guest rooms.

The players

Lotte Hotels & Resorts

This international hotel operator manages luxury properties and previously owned the New York Palace building.

Roman Catholic Archdiocese of New York

The religious organization served as the landowner of the site prior to the recent sale.

The details

Lotte Hotels & Resorts previously operated the Midtown Manhattan property on leased land before reaching this agreement with the Roman Catholic Archdiocese of New York. The company plans to finance the deal through a combination of asset securitization and external investment.

Lotte acquired the hotel building in 2015.
Lotte announced the land purchase on Monday, September 28, 2026.

Culture Shift

This acquisition reflects a broader shift in the hospitality sector where major brands are moving from leasehold models to direct land ownership. This transition allows operators to solidify their footprint in high-value urban markets like Midtown Manhattan.

The transition to land ownership is unlikely to change daily services for guests at the New York Palace. For the local area, the deal highlights the continued investment value of prime Midtown Manhattan real estate.

The takeaway

Owning underlying land serves as a strategic hedge against rising lease costs for large-scale hotel operators. Investors and luxury travelers should note how property ownership models influence the long-term stability and luxury positioning of major hotel brands.