Red Planet Japan will acquire Thailand-based hotel operations from its parent company Red Planet Hotels for 6.6 billion yen (US$60.4 million), with the deal expected to be completed by the end of 1Q2019.
The acquisition includes five operating hotels, located in Bangkok’s Surawong and Asoke, Phuket’s Patong, Pattaya, and Hat Yai, and a sixth property under development in Bangkok’s Sukhumvit Soi 8. The operating hotels being acquired in Thailand recorded sales equating to 693 million yen in 2017 and 787.1 million yen in 2018.
This will increase Red Planet Japan’s portfolio to a total of 15 hotels in Japan, Thailand and the Philippines, including five hotels under development.
“Bilateral tourism is showing sustained growth, particularly among millennial customers who are Red Planet’s core customer base,” said Red Planet Japan’s CEO, Tim Hansing, in a statement. “This acquisition allows us to spread our geographical coverage and, in particular, penetrate key source markets for inbound visitation to Japan.”
This acquisition follows a series of expansion announcements by Red Planet Japan, including the planned opening of Red Planet Hiroshima Nagarekawa in summer 2020, and acquisition of two flagship properties in Manila in June 2018. The brand also 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 that its recent joint venture with GreenOak has enabled the investment of 22 billion yen in six new hotels over the next two years, as the company now has “the scale to attract new growth drivers such as franchising, management contracts, and joint ventures in both existing and new markets”.