RED PLANET JAPAN COMPLETES SALE-AND-LEASEBACK OF SAPPORO SUSUKINO CENTRAL HOTEL

                                                                 

TOKYO – Red Planet Japan Inc., the Tokyo Stock Exchange listed subsidiary of Bangkok-based Red Planet Hotels, announced a JPY3.4 billion sale-and-leaseback of its newest property in Sapporo. Under the terms of the transaction, Red Planet sold the hotel and simultaneously entered into a long-term lease-and-operate agreement with a unit of Goldman Sachs.

The 212-room Red Planet Sapporo Susukino Central opened on 14 September 2019. The new hotel features Red Planet’s signature modern, smart hotel design and is located just off picturesque Odori Park, in the downtown Susukino neighbourhood alongside local attractions and within easy access of public transportation. The hotel is also just a short walk to the Sapporo Clock Tower, Sapporo TV Tower, and scenic Nakajima Park.

The new hotel is Red Planet’s second in Sapporo, and has also enjoyed brisk demand following the Rugby World Cup’s kick-off in the city. Further spurred by increasing direct international airlift to New Chitose Airport, which serves the Sapporo metropolitan area, the city’s attraction for regional travellers continues to grow. Inbound tourism flows, mainly from Southeast Asia and China, have underpinned room rates and occupancies across Hokkaido. In 2018, 660,000 Chinese tourists visited the region. However, the prefectural government estimates more than 5 million overseas visitors will visit the region by 2020, a 79% increase in just 3 years, with Chinese visitors expected to account for 1.5 million arrivals alone.

“Sapporo is an attractive hotel investment market, driven by the year-round popularity of the city and other tourism hotspots around Hokkaido. The superbly-located Sapporo Susukino Central hotel provides the perfect hub for travellers expecting a hotel which combines the comforts of an exceptional hotel experience with the application of relevant travel technology,” commented Simon Gerovich, Chairman of Red Planet Japan Inc. “Moreover, Red Planet remains a unique brand in Japan as we acquire, develop, and operate our own hotels. This sale demonstrates the high investor demand for our branded hotels, and supports our strategy to continue rapid expansion in Japan through financial partnerships.”

Red Planet Japan currently operates 1,729 rooms across Japan and Thailand, with a further 737 rooms being constructed in Manila and Bangkok, another 160 rooms in Hiroshima, and 191 rooms in Kyoto by 2021.

For more information or high-resolution photography, please contact:

David Rubenstein
Investor Relations Director
Red Planet Japan Inc.
Tel: +81 80 5835 2066
Email: david.r@redplanethotels.com

About 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 hotels in Tokyo, Nagoya, and Sapporo. Hotels in Hiroshima and Kyoto are currently under construction. The company intends to acquire another five development sites in 2019. Red Planet Japan has also acquired its parent company’s Thailand-based operations and development sites in Bangkok, Thailand and Manila, Philippines, with three hotels sequenced to open by 2020 and 2021. The Company is listed on the Tokyo Stock Exchange under the ticker symbol 3350.

For more information, please visit: www.redplanetjapan.com

About Red Planet Hotels

Red Planet Hotels, founded in 2010, is a privately-owned regional hotel group focused on Asia’s expanding budget hotel sector. The company operates 31 hotels in Indonesia (7), Japan (6), the Philippines (13), and Thailand (5) for a total of 4,991 rooms. 12 additional hotels, comprising 2,388 rooms, will open across Japan, Thailand, and the Philippines by 2021. 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 its properties centrally located and equipped with 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.

For more information, please visit: www.redplanethotels.com