S Korea's Lotte Group to buy The New York Palace Hotel for $805 mn

South Korea's Lotte Group yesterday struck a deal to buy the New York Palace Hotel - a luxury property in midtown Manhattan, from real estate management firm Northwood Investors for $805 million.

Northwood Investors had acquired the 55-storey hotel originally built in 1982 from the Sultan of Brunei in 2011 for a reported $400 million.

Soon after the purchase, Northwood Investors spent around $140 million on renovation.

The New York Palace Hotel comprises The Villard House, a 73,000-square feet landmark building fronting Madison Avenue, which houses meeting space and a restaurant, Hotel Tower, a 55-story building which houses 899 guestrooms, and Maloney & Porcelli, 11,000-square feet restaurant located on 50th Street between Madison and Park Avenues.

The hotel features 909 rooms and suites, including 176 renovated exclusive Towers accommodations and dining venues, such as Pomme Palais. The hotel's famed Villard Mansion built in 1882 is recognized as a New York City Landmark and gracefully blends with a contemporary 55-story tower.

The acquisition of The New York Palace Hotel is the latest move by Lotte to expand globally. It has already acquired hotels in Moscow, St. Petersburg and Tashkent in Russia and Hanoi in Vietnam.

It is also constructing hotel projects in China and Myanmar.

"We hope this acquisition will heighten Lotte's global brand value and expand its presence in Southeast Asia, Europe as well as the US market," the company said in a statement.