Fair Trade Commission approves Lotte Rental stake sale, with Lotte targeting October completion

Lotte has secured approval to sell its controlling stake in Lotte Rental, clearing a regulatory hurdle for a transaction it aims to complete by October.

Hotel Lotte and Busan Lotte Hotel hold the shares being sold. Together, their stakes total 61.2%, with Hotel Lotte holding 38.1% and Busan Lotte Hotel 23.0%. The deal with global investment firm TPG is worth 1.3105 trillion won, or 59,000 won per share.

Lotte said it will complete shareholder meetings and other follow-up procedures before closing the sale. It plans to use the proceeds to improve the financial strength of the two hotel companies and reinforce their business competitiveness.

The group also plans to direct funds toward renovating domestic hubs and strengthening its ability to operate premium brands. It said the moves aim to improve the hotel business’s profit structure as growth continues. Hotel Lotte recorded an operating profit of 135.6 billion won in the first half of the year, from January through June, amid an increase in foreign tourists.

The sale forms part of Lotte’s broader restructuring of its business portfolio, which involves disposing of noncore businesses and assets while focusing on its core strengths.