To Expand its Wings, Red Planet Japan Procures Thailand Hotel Portfolio
Red Planet Japan will acquire the Thailand-based hotel operations from its parent company Red Planet Hotels for 6.6 billion yen (US$60.4 million), with the deal expected to be completed by the end of the first quarter of the fiscal year 2019. With this takeover, Red Planet Japan's portfolio will expand to a total of 15 hotels in Japan, Thailand, & the Philippines, including five hotels under development.
Speaking about the acquisition, Tim Hansing, CEO, Red Planet Japan, says "We are delighted to announce the significant expansion of Red Planet Japan's hotel portfolio across Asia. Bilateral tourism is showing sustained growth, particularly among millennial customers who are Red Planet's core customer base. This acquisition allows us to spread our geographical coverage and, in particular, penetrate key source markets for inbound visitation to Japan.”
The acquisition includes five operating hotels, located in Bangkok’s Surawong & Asoke, Phuket’s Patong, Pattaya, & Hat Yai, and the sixth property under development in Bangkok’s Sukhumvit Soi 8. The operating hotels being acquired in Thailand recorded sales equating to 693 million yen in 2017 and 787.1 million yen in 2018.
Simon Gerovich, Chairman of Red Planet Japan, says, "Red Planet Japan is now a regional leader in the Asian budget hotel space with properties in Japan, the Philippines, and Thailand. Not only does this expanded network drive revenues and profit margins due to the economies of scale, but also underlines our regional operational expertise. As witnessed by our recently-announced joint venture which enables us to invest up to 22 billion yen in six new hotels over the next two years, we have the scale to attract new growth drivers such as franchising, management contracts, and joint ventures in both existing and new markets."
This acquisition follows a series of extension including the planned opening of Red Planet Hiroshima Nagarekawa in summer 2020, and acquisition of two flagship properties in Manila in June 2018. The brand also revealed Red Planet Sapporo Susukino South, its fifth hotel in Japan in June 2018, and expects to open its second property in Sapporo, Red Planet Sapporo Susukino Central, in October 2019.
Founded in 2010, Red Planet Hotels is a privately-owned regional hotel group focused on Asia's expanding budget hotel sector. Red Planet comprises a stylish budget hotel offering, with all its properties centrally located and equipped with high-speed Wi-Fi.
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