Red Planet Japan Further Expands Hotel Portfolio With The Acquisition Of Thailand Hotel Portfolio
Red Planet Japan Inc. (3350:JP) today announced that it will acquire the Thailand-based hotel operations from its parent company Red Planet Hotels Limited. The acquisition is expected to be completed by the end of the first quarter of fiscal year 2019.
As a result of this acquisition, Red Planet Japan's portfolio will increase to a total of 15 hotels in Japan, Thailand, and the Philippines, including five hotels under development.
"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," said Red Planet Japan's Chief Executive Officer, Tim Hansing. "This acquisition allows us to spread our geographical coverage and, in particular, penetrate key source markets for inbound visitation to Japan," Hansing added.
With the expansion of low-cost carrier routes, the liberalisation of visa requirements, and a growing affinity for Japanese culture, there has been a substantial increase in the number of tourists travelling from Southeast Asiato Japan in recent years, especially from Thailand. Thai visitors to Japanhave more than doubled over the last five years to 1.13 million in 2018. Correspondingly, the number of Japanese visitors to Thailand continues to rise, exceeding 1.4 million visitors in 2016, 1.5 million in 2017, and 1.6 million in 2018.
The acquisition of Red Planet's Thailand hotels follows a series of expansion announcements by Red Planet Japan, including the planned opening of Red Planet Hiroshima Nagarekawa in the summer of 2020 and acquisition of two flagship properties in Manila in June 2018. Further, the fast-growing brand opened 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.
Simon Gerovich, Chairman of Red Planet Japan, added, "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."
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