Red Planet Japan has announced the acquisition of hotels in Thailand from its parent company, Red Planet Hotels Limited, with the transaction expected to be completed by the end of the first quarter of the fiscal year 2019.

       Red Planet Japan will acquire a total of six hotels in Thailand from its parent company, with the acquisition valued at 6,585,130,000 yen. This acquisition includes five operational hotels located in Surawong (Bangkok), Patong (Phuket), Asoke (Bangkok), Pattaya, and Hat Yai, while the sixth hotel is under construction in Sukhumvit Soi 8 (Bangkok). The operational hotels in Thailand that are being acquired reported sales of 692,960,064 yen in 2017 and 787,122,058 yen in 2018.

This acquisition will bring Red Planet Japan's total hotel portfolio to 15 hotels across Japan, Thailand, and the Philippines, along with an additional five hotels currently under construction.

  “We are pleased to announce that this is a significant expansion of the Red Planet Japan hotel portfolio across Asia. Bilateral tourism shows sustainable growth, particularly among the younger generation, with millennial customers being the core base of Red Planet,” said Tim Hansing, CEO of Red Planet Japan. “This acquisition allows us to diversify our geographical coverage, especially in key markets for tourists visiting Japan,” Hansing added.

 

With the expansion of low-cost airline routes, visa liberalization, and the increasing appeal of Japanese culture, the number of tourists visiting Japan from Southeast Asia has continued to grow in recent years, particularly from Thailand. The number of Thai tourists has doubled over the past five years, reaching 1.13 million in 2018, which aligns with the increasing number of Japanese tourists traveling to Thailand, with over 1.4 million visiting in 2016, 1.5 million in 2017, and 1.6 million in 2018.

The acquisition of Red Planet hotels in Thailand comes as part of Red Planet Japan's expansion plans, which also include the opening of Red Planet Hiroshima Nakarekawa in the summer of 2020 and the acquisition of two flagship hotels in Manila in June 2018. Additionally, this rapidly growing brand opened Red Planet Sapporo Susukino South, marking its fifth hotel in Japan, in June 2018, with plans to open a second hotel in Sapporo - Red Planet Sapporo Susukino Central - in October 2019.

Simon Gerovich, President of Red Planet Japan, further stated, “Currently, Red Planet Japan is a leader in the budget hotel market in the Asia region with hotels in Japan, the Philippines, and Thailand. This network expansion not only helps increase revenue and generate greater profits from economies of scale but also clearly demonstrates our expertise in hotel management in this region, as evidenced by our recent joint venture announcement, which allows us to invest up to 22 billion yen in six new hotels over the next two years. We have the capability to attract new growth drivers such as franchises, management contracts, and joint ventures in both existing and new markets.”