TUNE Hotels is riding into the Land of the Rising Sun with Red Planet Japan, aiming for 20 properties by 2020.
Tim Hansing, CEO of Red Planet Hotels and director of subsidiary Red Planet Japan, told TTG Asia e-Daily: “(Red Planet Hotels) entered the market by acquiring 40 per cent ownership of a public-listed company in Japan and renaming it.
“We picked Japan because 25 per cent of our (own) shareholders are Japanese, as well as the fact that the government is actively courting inbound travel and tourism investments, building on its successful bid for the 2020 summer Olympic Games.”
He said that some US$20 million had been raised to fund expansion in Japan.
Red Planet Hotels is Tune Hotels’ largest global franchise partner and has a 17 per cent stake in Tune Hotels (TTG Asia e-Daily, October 10, 2013). It owns and operates Tune Hotels in the Philippines, Thailand, Indonesia and Japan.
Hansing explained that room sizes would be 0.5m2 bigger and come with a luggage storage area. “We’ll be including most of the add-ons with the package so as not to confuse consumers who are unused to a ‘pay for extra’ concept.”
However, add-ons like early check-ins, late check-outs and meal packages will still be sold. Bundled packages will be rolled out for tour operators in the coming summer.
Red Planet Japan last summer opened its virgin Japan property in Naha, Okinawa and its second will open in downtown Tokyo. Hansing said Red Planet Japan would go to major cities that lacked accommodation options.
Beyond Japan, Red Planet Hotels may enter South Korea where five MoUs have recently been signed though Chinese expansion has been delayed due to rising operational costs.
