Red Planet Japan has acquired a land plot in the Nagarekawa district of Hiroshima for a Red Planet hotel, set to open in the months leading up to the 2020 Olympics.
The 160-room budget hotel will be Red Planet Japan’s seventh property in Japan, adding to its portfolio of hotels in Tokyo, Naha, Nagoya and Sapporo.
Red Planet’s CEO, Tim Hansing, said: “Our Hiroshima property takes on an important strategic role as we aim for a nationwide circuit tourism offering.”
Hiroshima, a gateway city to Western Japan for Asian tourists, is home to two UNESCO World Heritage Sites, the Island Shrine of Itsukushima and the Hiroshima Peace Memorial Museum, as well as other attractions such as Hiroshima Castle, the Shukkei-en Garden and the Hiroshima Museum of Art.
Simon Gerovich, chairman of Red Planet Japan, added: “Red Planet Japan is growing rapidly… Our business model is predicated on gaining scale and as our portfolio grows, we gain efficiencies and our margins expand.”
In 2019, Red Planet Japan will open its second hotel in Sapporo and its first hotel in Manila, followed by this Hiroshima property and a second hotel in Manila opening in 2020.
“These new hotels shall accelerate our earnings trajectory, and we continue to seek further sites in Japan, and beyond, to further grow our hotel portfolio,” Gerovich continued.
Red Planet Japan currently operates 704 rooms across Japan with a further 575 rooms being constructed in Manila, another 212 rooms in Sapporo, and 160 rooms in Hiroshima before the end of 2020.
Red Planet Japan’s new hotels would boost the number of rooms operating under the Red Planet brand in Asia to 6,552 over the next two years.