Red Planet Japan has formed a joint venture with funds managed by GreenOak
Investment Management K.K., the Japanese arm of GreenOak Real
Estate, that will develop Red Planet branded hotels in select city
centres throughout Japan.
GreenOak shall invest up to 5
billion yen in the venture, while RPJ will invest just over 555
million 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.
Through the new venture, Red Planet Japan plans to build
hotels across major Japanese city centres, commencing with a 160
room hotel in Hiroshima.
Red Planet Japan's
Chief Executive Officer,
Tim Hansing, said, "This partnership
enables major expansion of our hotel footprint across Japan's
urban centres, solidifying our position as a leading Asian
budget hotel chain to meet increasing demand from, above all, the
booming tourism surge into Japan."
operated in Japan since 2010 and has USD 10.6 billion in assets
under management worldwide.
Tokyo-based GreenOak Partner, Dan
Klebes, said, "Through this venture, GreenOak seeks to invest
in a sought-after asset class with a brand which appeals to the
regional value-seeking traveller visiting Japan today. The
Japanese hospitality market enjoys high occupancy rates and rising
rooms rates, providing high yields and substantial asset
appreciation. We believe our relationships will assist Red Planet
in identifying new opportunities in Japan, and we hope to commit
further funds to the budget hospitality sector in an ongoing
partnership with Red Planet."
With the new hotels, Red Planet Japan shall operate 2,500 rooms
across Japan and Philippines, boosting the total number of
rooms operating under the Red Planet brand in Asia to 7,452 over
the next two years.
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