Hanjin Group, owner of South Korea’s flag carrier Korean Air, selected InterContinental Hotel Group as the service operator of its incoming premium hotel in the U.S.

The group on Tuesday signed a consignment contract with InterContinental, entrusting the management of the $1.2 billion Wilshire Grand Hotel to open in Los Angeles in 2017. “InterContinental is the right kind of brand which may realize the high-class service on behalf of Wilshire Grand Hotel,” said Cho Hyun-ah, chief of KAL Hotel Network, a hotel management affiliate of Hanjin Group.

The 73-story hotel, once completed, is to be the tallest building in the city, as well as the eighth tallest in the U.S.

The lobby will be located on the 70th floor to offer visitors a high-rise view over the city’s financial district. The lower floors will incorporate a vast commercial area including 37,000 square meters of office space, according to officials.

Also, the city of Los Angeles decided to exempt up to $79 million in taxes, considering the economic boosting effect that the new hotel is expected to bring to the region.

(tellme@heraldcorp.com)