Lotte Hotels & Resorts said on the 15th that first-quarter revenue rose 14.2% from a year earlier to 348.4 billion won. Operating profit swung to a surplus of 25.7 billion won. Both revenue and operating profit were the highest ever for a first quarter.
An increase in foreign tourists and a recovery in global travel demand appear to have led to improved results at hotels and duty-free stores. In the first quarter, foreign guests rose about 14.1% from a year earlier, and room revenue increased 10.2%.
Overseas hotel revenue also increased 7.9% on the back of a recovery in key markets. Growth was notable especially in Vietnam and the United States, where many chain hotels are located.
The duty-free division saw strong results thanks to increased inflows of free independent travelers (FIT). First-quarter FIT net sales rose 50% year over year. By country, China increased 68%, and Taiwan and Vietnam rose 38% and 255%, respectively.
From the second quarter of this year, results from the reopened Incheon International Airport duty-free stores are expected to contribute to top-line growth. Lotte Duty Free began operations on Apr. 17 in the DF1 zone where The Shilla Duty Free returned its business license.