Key Takeaways
- • Lotte Group said on October 30, 2026 that it completed the sale of a 61.2% controlling stake in Lotte Rental to U.S.-based global private equity firm TPG, for a total transaction price of about 1.3105 trillion won ($920 million), or 59,000 won per share.
- • The stake comprised 38.1% held by Hotel Lotte and 23.0% held by Busan Lotte Hotel, with the share purchase agreement signed with TPG on August 11.
- • Proceeds will be used to improve the financial soundness of Hotel Lotte and Busan Lotte Hotel and to strengthen their core competitiveness and growth drivers.
- • The transaction ends roughly 11 years of Lotte ownership, which began when Lotte bought the company for about 1.02 trillion won in 2015.
- • The sale is part of a portfolio overhaul under way since 2025, in which Lotte is divesting non-core businesses and low-efficiency assets to focus on higher-profitability operations.
Summary
Lotte Group said on October 30 that it has completed the sale of a 61.2% controlling stake in Lotte Rental to TPG, the U.S.-based global private equity firm, according to the company's announcement as reported by Seoul Economic Daily. The group signed the share purchase agreement with TPG on August 11. The stake was held by two Lotte affiliates: 38.1% by Hotel Lotte and 23.0% by Busan Lotte Hotel. The total transaction price was about 1.3105 trillion won ($920 million), or 59,000 won per share.
Lotte Rental began in 1989 as Kumho Rent-a-Car under Kumho Asiana Group. KT acquired the company for about 300 billion won in 2010, and Lotte Group bought it for about 1.02 trillion won in 2015 and rebranded it. The latest deal transfers control to TPG after roughly 11 years under Lotte.
Lotte Group plans to use the proceeds to improve the financial soundness of Hotel Lotte and Busan Lotte Hotel, strengthen their core competitiveness and secure future growth drivers. Lotte Rental said it will draw on the global investment capabilities and network of TPG, its new largest shareholder, to sharpen the competitiveness of its existing businesses and reinforce its foundation for medium- and long-term growth.
The sale is part of a portfolio overhaul that Lotte Group has pursued since last year, under which the group is divesting non-core businesses and low-efficiency assets while concentrating resources on operations with higher profitability and growth potential. A Lotte Group official said the buyer was selected after a comprehensive review of Lotte Rental's core competitiveness and medium- to long-term growth potential, and that Lotte will continue reviewing the profitability, growth potential and strategic fit of each business.
Lotte Rental began in 1989 as Kumho Rent-a-Car under Kumho Asiana Group. KT acquired the company for about 300 billion won in 2010, and Lotte Group bought it for about 1.02 trillion won in 2015 and rebranded it. The latest deal transfers control to TPG after roughly 11 years under Lotte.
Lotte Group plans to use the proceeds to improve the financial soundness of Hotel Lotte and Busan Lotte Hotel, strengthen their core competitiveness and secure future growth drivers. Lotte Rental said it will draw on the global investment capabilities and network of TPG, its new largest shareholder, to sharpen the competitiveness of its existing businesses and reinforce its foundation for medium- and long-term growth.
The sale is part of a portfolio overhaul that Lotte Group has pursued since last year, under which the group is divesting non-core businesses and low-efficiency assets while concentrating resources on operations with higher profitability and growth potential. A Lotte Group official said the buyer was selected after a comprehensive review of Lotte Rental's core competitiveness and medium- to long-term growth potential, and that Lotte will continue reviewing the profitability, growth potential and strategic fit of each business.
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