Affiliates of South Korea-based Lotte Hotels & Resorts have acquired the land occupied by its hotel property, Lotte New York Palace, on Madison Avenue in New York from the Archdiocese of New York for $490 million cash, according to a Dec. 11 petition filed with the New York State Supreme Court.
The land was previously under a long-term ground lease, which had been in effect since 1974, per the petition. Lotte Hotels & Resorts acquired the hotel, formerly The Helmsley Palace Hotel, in 2015 from Northwood Investors for $805 million. Prior to purchasing the premises, Lotte had exercised a 25-year long-term lease extension on the land, which was set to expire in 2052, per the petition.
The 909-key luxury Lotte New York Palace spans 51 floors and includes 733 guest rooms and suites in its main hotel, plus an additional 176 guest rooms and suites in The Towers, which comprise the building’s top 14 floors.
The land sale news followed a Dec. 8 announcement from Cardinal Timothy Dolan, the Archbishop of New York, regarding the establishment of a fund designed to compensate victim-survivors of the church’s sexual abuse.
The Gothamist reported that officials confirmed part of the Palace sale would go to that fund, and the remainder would repay loans taken to fund previous settlements.
According to Gothamist, the Palace land plot is one of the archdiocese’s most valuable real estate assets.
