Red Planet Hotels Ltd, a fast-growing pan-Asian budget hotel chain, said it has raised $70 million in a new funding round from Goldman Sachs Group (NYSE: GS).
Red Planet Hotels is privately held and headquartered in Bangkok, Thailand. The company’s subsidiaries Jakarta-based Red Planet Indonesia (IDX: PSKT), and Tokyo-based Red Planet Japan (TYO: 3350), are publicly traded.
Red Planet Hotels was founded in 2010 and has quickly established itself as Asia’s largest and fastest-growing hotel company focused on the value hotel sector.
Since 2011, the hotel chain has raised $240 million (£184 million), Red Planet said. The new funds “will facilitate the activation of a confirmed pipeline for 10 hotels to open over the next 24 months,” and position the company to complete a pre-IPO funding round “amounting to $250 million,” the company said.
Jonathan Vanica, managing director at Goldman Sachs Asian Special Situations Group, said, “The growth of travel, coupled with the evolving demands for more diverse and cost-efficient hospitality platforms, is leading to new opportunities for entrepreneurial companies in Asia. We anticipate our capital will help Red Planet Hotels accelerate its expansion throughout the region.”
“We have a well-diversified portfolio over four countries, and have developed a highly systematized brand. We have also created a unique customer-facing IT platform that is without parallel in our market. We now have substantial growth opportunities not only in our existing markets but also in additional countries where we are confident our brand and product will excel,” said Red Planet chief executive and co-founder Tim Hansing.
“To have our company, our people, our product, and our brand be funded by Goldman Sachs indeed gives us the confidence that we are on the right track to our stated goal of a 2018 IPO,” continued Hansing, adding that the investment would solidify the company’s current expansion roadmap and set the stage for a larger round of private equity funding to support further expansion of the brand.
Prior to joining Red Planet, Hansing served as a senior executive at Kingdom Hotel Investments, Movenpick Hotels & Resorts, Arthur Andersen’s real estate and hospitality division, and other major hospitality groups.
Simon Gerovich, chairman and co-founder of Red Planet Hotels, added: “The investment we have received from Goldman Sachs will augment our expansion capabilities in the short-term and allow us to focus on our longer-term goals of scaling up our hotel footprint across the Asia-Pacific region.”
Gerovich previously founded Evolution Capital PLC, listed on the Stock Exchange of Thailand. He has spent his entire professional career in Asia and is a fluent Chinese and Japanese speaker. He was formerly an equity derivatives trader at Goldman Sachs in Tokyo from 2000 to 2005, and graduated with a BA, cum laude, in Applied Mathematics from Harvard University in 2000.
Red Planet owns and operates a portfolio of 26 hotels (24 under the Red Planet brand) in Indonesia (7), Japan (4), the Philippines (10), and Thailand (5), with a total of 4,118 rooms, growing its portfolio through the acquisition of existing hotels and development of new hotels.
Red Planet’s robust and scalable technology platform provides both advanced reservation software and local attraction guides for customers, ensuring a fast and efficient booking process. The Asian hospitality group comprises a stylish value hotel offering, with all of its properties centrally located and featuring high-speed Wi-Fi.