Hotel Lotte announced on the 14th that its consolidated operating profit for the second quarter of this year reached 3.6 billion won, marking a return to profitability.
The hotel performance improved due to a continuous influx of foreign tourists, and the duty-free business also made a profit for the second consecutive quarter by reducing transactions with Chinese 'daigong' (tourists who purchase goods in bulk).
However, revenue decreased by 11.7% compared to the same period last year, totaling 1.1263 trillion won.
Hotel Lotte's revenue for the first half of the year was 2.1659 trillion won, a decline of 11.9% compared to the same period last year, while its operating profit turned positive at 44.37 billion won.
Breaking down the second quarter's performance by business segment, the hotel division reported a revenue of 11.2 billion won, which is an increase of 114.5% compared to the same period last year.
The number of foreign guests increased by 6.9% (54,000 people), leading to a 6.6% rise in hotel room revenue. Excluding the Lotte Hotel Seoul, where the main tower room renovation began in May, total room revenue saw a 12% increase.
Overseas hotels also saw a 14.3% increase in revenue as the global tourism market recovery continued, with the Americas region, where many chain hotels are located, growing by 12.3%, and Vietnam by 5.5%.
The hotel division's revenue for the first half of the year reached 677.97 billion won, marking a 6.5% increase compared to the same period last year, and its operating profit turned positive at 9.1 billion won.
A representative from Lotte Hotel & Resort said, "With the stabilization of operations at L7 Haeundae by Lotte, which opened last year, and Lotte Hotel & Resort Gimhae, as well as the expansion of products on our online mall, we expect annual growth to continue due to business diversification."
The World Division's second quarter revenue was 85.03 billion won, and its operating loss was 14.22 billion won.
The World Division aims to increase visitor numbers by introducing seasonal festival content in collaboration with various external intellectual properties (IPs), such as Pokémon, and new attractions.