Hotel Lotte Reports Q3 Operating Profit of 117 Billion Won, Up 384% Year-on-Year
by Kim Heungsoon
Published 14 Nov.2025 18:37(KST)
Revenue Reaches 1.2218 Trillion Won, Down 4.9%
Hotel Sales Rise on Increase in Foreign Tourists
Duty-Free Division Achieves Three Consecutive Quarters of Profit Through Efficiency Strategies
Hotel Lotte succeeded in maintaining profitability in the third quarter of this year, driven by improved hotel performance due to an increase in foreign tourists and the effectiveness of management efficiency strategies in its duty-free business.
On November 14, Hotel Lotte announced that its consolidated operating profit for the third quarter of this year was 117 billion won, a 384.2% increase compared to the same period last year. Revenue was 1.2218 trillion won, down 4.9% from the previous year.
By business segment, the hotel division recorded revenue of 386.8 billion won, up 3.7%, and operating profit of 67.1 billion won, a 74.1% increase. The hotel business performance improved as the influx of foreign tourists continued. The number of foreign guests increased by 8.9% (100,000 people), and hotel room revenue rose by 4.6% year-on-year. Overseas hotels also saw revenue increase by 11.3% compared to the same period last year, as the global tourism market continued to recover. In the Americas, where many chain hotels are located, revenue increased by 9.5%, and in Vietnam, by 6.5%. The company explained that, despite a decrease in domestic demand due to increased outbound travel, resorts and golf courses have minimized the impact of declining demand.
The duty-free division, which includes Lotte Duty Free, posted third-quarter revenue of 724.1 billion won, a 9.4% decrease from the same period last year. Operating profit turned positive at 18.3 billion won. This marks the third consecutive quarter of profitability, following the first and second quarters. Online duty-free sales increased by approximately 28% year-on-year, while overseas store sales rose by about 8%.
Lotte Duty Free is optimistic about the recovery in Korea-China exchanges, following the visa-free entry for Chinese group tourists implemented at the end of September and the hosting of the Asia-Pacific Economic Cooperation (APEC) summit. Accordingly, the company plans to strengthen downtown duty-free infrastructure, expand on- and offline promotions to sustain sales growth, and continue to pursue a profitability-focused management strategy.
A representative from Lotte Duty Free stated, "We achieved three consecutive quarters of profitability by strengthening efforts to attract both domestic and foreign customers and boosting online sales," adding, "We will continue to expand both sales and profitability through efficient operations and enhanced marketing."
The World Business Division, which includes Lotte World, recorded third-quarter revenue of 110.7 billion won, a 1.1% decrease, while operating profit was 31.5 billion won, a 0.1% increase. The division explained that, despite the overall challenges in the theme park industry due to increasing competition from various content, efforts such as intellectual property (IP) collaborations, seasonal festivals, and the introduction of new performances to attract visitors, as well as the rising trend of inbound foreign visitors, contributed positively to its results.
A representative from the World Business Division said, "We will focus on performance recovery by increasing visitor numbers and utilizing in-house IP for animated series and popular IP-based offline spaces."
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