TOKYO, Jan. 30, 2019 /PRNewswire/ -- 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.
Red Planet Japan will acquire six hotel-owning companies in Thailand from its parent company for a total acquisition consideration of 6,585,130,000 yen. The acquisition includes five operating hotels, located in Surawong (Bangkok), Patong (Phuket), Asoke (Bangkok), Pattaya, and Hat Yai, and a sixth property under development in Sukhumvit Soi 8 (Bangkok). The operating hotels being acquired in Thailand recorded sales equating to 692,960,064 Japanese yen in 2017 and 787,122,058 Japanese yen in 2018.
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 Asia to Japan in recent years, especially from Thailand. Thai visitors to Japan have 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 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. The company's newly established joint venture intends to acquire another 5 development sites by mid-2019. 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.
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 4,779 rooms. 14 additional hotels, comprising 2,669 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
SOURCE Red Planet Japan Inc.