Red Planet to Invest up to 22 Billion Yen Into New Hotels Through Japan Joint Venture With GreenOak
Red Planet Japan Inc. (3350:JP) today announced the formation of a joint venture with funds managed by GreenOak Investment Management K.K., the Japanese arm of GreenOak Real Estate, that will develop Red Planet branded hotels in select city centres throughout Japan.
Through the new venture, Red Planet Japan plans to build hotels across major Japanese city centres, commencing with a 160 room hotel in Hiroshima. Both parties expect to expand the scope of the venture over the following two years to keep pace with the rapidly-growing Japanese travel market.
Red Planet Japan's Chief Executive Officer, Tim Hansing, said, "This partnership enables major expansion of our hotel footprint across Japan'surban centres, solidifying our position as the leading Asian budget hotel chain to meet increasing demand from, above all, the booming tourism surge into Japan. We are particularly pleased to be be able to showcase our guest-facing technology which is transforming the stay experience. None of our competitors have been able to implement anything like this."
GreenOak has operated in Japan since 2010 and has USD 10.6 billion in assets under management worldwide. Tokyo-based GreenOak Partner, Dan Klebes, commented, "Through this venture, GreenOak seeks to invest in a sought-after asset class with a brand which appeals to the regional value-seeking traveller visiting Japan today. The Japanese hospitality market enjoys high occupancy rates and rising rooms rates, providing high yields and substantial asset appreciation. We believe our relationships will assist Red Planet in identifying new opportunities in Japan, and we hope to commit further funds to the budget hospitality sector in an ongoing partnership with Red Planet."
Simon Gerovich, Chairman of Red Planet Japan, commented, "Having created the brand, infrastructure, and technology platform to realise substantial increases in revenues, margin expansion, and profits, we are now accelerating the pace of our roll-out. We regard this venture as the first of a series of asset developments with GreenOak over the coming years. The market is substantial, and growing rapidly, and we are well poised to scale up our presence accordingly."
With the new hotels, Red Planet Japan shall operate 2,500 rooms across Japan and the Philippines, boosting the total number of rooms operating under the Red Planet brand in Asia to 7,452 over the next two years.
About Red Planet Japan, Inc.
Red Planet Japan, Inc. is the JASDAQ-listed Japanese operation of Red Planet Hotels Limited. The company commenced operations in Japan in August 2013 with the opening of Red Planet Okinawa Naha, followed by the opening of Red Planet Tokyo Asakusa in 2015. Red Planet Nagoya Nishiki subsequently opened in October 2017. In June 2018, Red Planet opened Red Planet Sapporo Susukino South, its first property in Sapporo. Red Planet Sapporo Susukino Central and Red Planet Hiroshima Nagarekawa are currently under development and are expected to open by 2019 and 2020, respectively. Red Planet Japan has also acquired development sites in Manila, Philippines, with two hotels sequenced to open by 2020. The Company is listed on the Tokyo Stock Exchange under the ticker symbol 3350.
GreenOak Real Estate is an independent, partner-owned, real estate focused principal investing and lending firm that seeks to provide strategic advice and create long term value for its clients and investors.
Since 2011, GreenOak has raised USD8.2 billion of discretionary equity from institutional investors for real estate lending and investment in Europe, the US and Asia, and has acquired over USD11 billion of assets. GreenOak has offices in London, Madrid, Milan, Luxembourg, New York, Los Angeles, Tokyo and Seoul, with over 100 professionals in dedicated local teams having local knowledge, experience and extensive networks in each market.
About Red Planet Hotels
Red Planet Hotels, founded in 2010, is a privately-owned regional hotel group focused on Asia's expanding budget hotel sector. The company owns and operates 30 hotels in Indonesia (7), Japan (5), the Philippines (13), and Thailand (5) for a total of 4,783 rooms. Eight additional hotels, comprising 1,769 rooms, will open across Japan, Thailand, and the Philippines in 2019 and 2020. These hotels will open using Red Planet's robust and scalable technology platform, providing both advanced reservation software, ensuring a fast and efficient booking process, and local attraction guides for customers. Red Planet comprises a stylish budget hotel offering, with all its properties centrally located and equipped with high-speed Wi-Fi. Red Planet's companies based in Jakarta (Red Planet Indonesia - PSKT:IJ) and Tokyo (Red Planet Japan - 3350:JP) are listed on the Indonesian and Japanese stock exchanges, respectively. For more information, please visit: www.redplanethotels.com