TOKYO – Red Planet Japan Inc., the Tokyo Stock Exchange listed subsidiary of Bangkok-based Red Planet Hotels, today announced a JPY 11.77 billion sale-and-leaseback transaction with Goldman Sachs. The transaction includes Red Planet’s hotels in Asakusa, Naha, and Nagoya as well as a forward purchase of the Susukino Central development project in Sapporo, resulting in gains of JPY 2.55 billion. JPY 1.45 billion shall be booked in the current year as extraordinary income, and JPY 1.10 billion shall be booked as long-term deferred income.
Under the terms of the transaction, Red Planet has sold ownership rights to the four hotels and simultaneously entered into a lease-and-operate agreement with Goldman Sachs for an initial period of 20 years. “We anticipate a long and fruitful relationship with Goldman Sachs over the coming years as we recycle capital at competitive cap rates,” remarked Yoshi Ikurumi, Chief Financial Officer, Red Planet Japan Inc.
Red Planet Hotels is reinvesting the sales proceeds into new hotel developments across Japan. The rapidly-growing hotel chain has 2 hotels under construction in Sapporo and 7 more hotels in its Japan development pipeline. The Red Planet brand has quickly established itself in Asia for rolling out an elegant yet price competitive product, with room rates set by an industry-unique fully-automated revenue management system.
According to the Japan National Tourism Organization (JNTO), the number of international travellers to Japan in 2017 reached 28.7 million. This mostly comprised Asian residents, with Chinese (7.4 million) and South Koreans (7.1 million) providing the majority of visitors, and residents from Taiwan, Hong Kong, Thailand, Singapore, Malaysia, Indonesia, the Philippines, and Vietnam all within the top 10 source markets for visitors to Japan. In building these hotels, Red Planet will be capitalising on its strong brand equity and high brand recall amongst South East Asian consumers.
Tim Hansing, Chief Executive Officer, Red Planet Japan Inc., said: “Japan is our fastest growing market. Through this transaction, we are able to accelerate the roll out of Red Planet Hotels across Japan to cater to the increasing numbers of discerning guests who demand compelling value without compromising on room and service quality. Red Planet’s undertaking to rapidly increase its footprint paves the way to meet the growing demand for good value, quality hotel accommodation in Japan.”
Red Planet currently owns and operates 29 hotels in 4 countries, with a focus on comfort, convenience, and style at an affordable price. The tech-savvy budget hotel chain continues to pioneer with its best-in-class app. The heavily-used app has transformed hotel guests’ experience with its unique “In-Stay Mode”, which enables guests to directly chat with the hotel’s front desk, search for local attractions, and order Uber services. Further, guests using the mobile app enjoy discounts at more than 200 restaurants located near Red Planet Hotels.
For more information or high-resolution photography, please contact:
|Vice President Marketing|
|Red Planet Hotels|
|Tel: 66 2 613 5818|
|Mobile: 66 80 463 2570|
|Kate Holgate, Jean Tan|
|Tel: +65 6426 8188|
|Daisuke Tsuchiya (土屋大輔)|
|Tel: +44 7703 472 014|
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. Currently, Red Planet Sapporo Susukino South and Red Planet Sapporo Susukino Central are under development, expected to open by mid-2018 and 2019, respectively. 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 company focused on Asia’s expanding budget hotel sector. The company owns and operates 29 hotels in Indonesia (7), Japan (4), the Philippines (13), and Thailand (5) for a total of 4,660 rooms. 8 additional hotels, comprising 1,732 rooms, will open across Japan, Thailand, and the Philippines in 2018 and 2019. 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 of its properties centrally located and featuring 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.