[THE INVESTOR] Hotel Lotte announced on Nov. 15 that the company plans to acquire a Hyundai Heavy Industries’ hotel in Vladivostok, Russia.

The Korean retail giant’s board recently approved the acquisition of the entire stake of Vladivostok Business Center, which operates Hotel Hyundai in Russia.

“We are currently discussing the acquisition price and other details,” a Hotel Lotte spokesperson told The Investor.

The shipbuilding giant began selling off its hotel business in September when private equity firm Hahn & Co. acquired a stake. The plans are a part of Hotel Lotte’s restructuring strategy implemented in 2016 to secure 3.5 trillion won (US$3.16 billion) by 2018 to help it regain its financial footing.

At the time, the company had excluded Hotel Lotte in Vladivostok and Hotel Seamarq in Gangneung, Gangwon Province, from the deal. Once it goes through, the shipbuilding firm will be left with just the one hotel in Gangeung. “For now we do not have any plans to sell our Gangneung hotel,” the HHI official said.

Hotel Hyundai was established in1997 and is the only five-star hotel in the city. Its net profit last year reached 2.2 billion won.

By Song Seung-hyun (ssh@heralcorp.com)