Hotel News - Red Planet Japan announces the $59.5 million acquisition of the Thailand-based hotel arm of its parent company Red Planet Hotels Limited on the back of a series of expansion announcements in the Asia Pacific region.
Red Planet Japan has announced that it is acquiring the Thailand-based hotel arm of its parent company Red Planet Hotels Limited. Industry experts say the acquisition is likely to be completed by the end of the first quarter of the financial year 2019.
Red Planet Japan will acquire a half dozen hotel-owning companies in Thailand, all of them from its parent company. This will make for a total acquisition consideration of 6.5 billion Japanese yen or $59.5 million.
The acquisition includes five operating hotels, located in Surawong (Bangkok), Patong (Phuket), Asoke (Bangkok), Pattaya, and Hat Yai. It also includes a sixth property that is currently under development in Sukhumvit Soi 8 (Bangkok).
The operating hotels being acquired in Thailand have a recorded sales that totals 692 million Japanese yen ($6 million) in 2017 and 787 million Japanese yen ($7.1 million) in 2018.
As a result of this acquisition, Red Planet Japan’s portfolio will increase to a total of 15 hotels in Japan, Thailand, and the Philippines, including five hotels under development.
EXPANSION OF JAPANESE TOURISM
Japan, like many markets with easy access to Southeast Asia, has undergone a tourism boom in recent years.
Factors such as the expansion of low-cost carrier routes, the loosening of visa requirements, and a growing affinity for Japanese culture, has fueled a substantial increase in the number of tourists travelling from Southeast Asia to Japan in recent years, especially from Thailand.
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