Published on : Friday, December 7, 2018
Red Planet Japan Inc. has announced the formation of a joint venture with funds managed by Green Oak Investment Management K.K., the Japanese arm of Green-Oak Real Estate, that will develop Red Planet branded hotels in select city centres throughout Japan.
Green-Oak shall invest up to 5 billion yen into the venture, while RPJ shall invest up to 555,555,555 yen and, with non-recourse debt, the venture shall have total capital of approximately 22.2 billion available to finance up to six new hotels in Japan over the next two years.
Red Planet Japan plans to build hotels across major Japanese city centers, commencing with a 160 room hotel in Hiroshima.
Both parties expect to expand the scope of the venture over the following two years to keep pace with the rapidly-growing Japanese travel market.
Red Planet Japan’s Chief Executive Officer, Tim Hansing, said that this partnership enables major expansion of our hotel footprint across Japan’s urban centres, solidifying our position as the leading Asian budget hotel chain to meet increasing demand from, above all, the booming tourism surge into Japan. They are particularly pleased to be able to showcase our guest-facing technology which is transforming the stay experience. None of the competitors have been able to implement anything like this.
Simon Gerovich, Chairman of Red Planet Japan, commented that having created the brand, infrastructure, and technology platform to realise substantial increases in revenues, margin expansion, and profits, we are now accelerating the pace of our roll-out. They regard this venture as the first of a series of asset developments with GreenOak over the coming years. The market is substantial, and growing rapidly, and they are well poised to scale up our presence accordingly.