Red Planet Hotels, through its Philippine subsidiary, has signed a PHP700 million loan facility with BDO Unibank, Inc. to fund planned and ongoing projects in Metro Manila, Philippines. The fundraising is part of Red Planet’s vision of continued expansion as the leading developer and operator of budget hotels in Southeast Asia and Japan.
Proceeds of the 7-year facility will be used to finance two new Red Planet hotels that are currently under development in Metro Manila. Red Planet Manila The Fort is a 245-room property in the key business district of Bonifacio Global City and shall open in early 2020. Opening by mid-2021 is Red Planet Manila Entertainment City, a 330-room hotel located adjacent to Manila’s bayside, proximate to Ninoy Aquino International Airport, the new casinos, and the sprawling Mall of Asia complex. The ultra-prime locations of the two hotels are expected to appeal to both domestic and foreign business and leisure travellers, generating high returns on capital employed.
On the occasion of the loan agreement signing, Red Planet Chief Financial Officer Yoshi Ikurumi said “This new facility with BDO ensures the timely completion of these two large projects in Manila’s Bonifacio Global City and the Bayside district of Entertainment City. With these two new hotels, Red Planet will be operating 15 hotels spread across Metro Manila, Cebu, Pampanga, Davao, and Cagayan de Oro, further underlining our brand’s growing dominance in the Philippines.”
“The development of these two prime assets will contribute significantly to our bottom line and growth prospects in the near future, and we would like to extend our thanks to BDO and Primeiro for their support and confidence in the Red Planet brand”, Mr. Ikurumi added. Primeiro Partners acted as Red Planet’s exclusive financial advisor for the transaction.
Ed Francisco, President of BDO Capital & Investment Corporation, said “BDO is pleased to be financing these tourism related projects. The latest developments in the Fort and Entertainment City will be the brand’s flagship properties and, with this funding from BDO, the new Red Planet hotels shall further accommodate the Philippines’ rapidly growing inbound visitor flows. The tourism sector has a hugely positive trickle-down effect on the economy and, as such, we continue to support successful businesses in the tourism and leisure industry. We hope to continue our support of Red Planet as they pursue their expansion in the Philippines and Southeast Asia.”About Red Planet Hotels
Red Planet Hotels, founded in 2010, is a privately-owned regional hotel company focused on Asia’s expanding budget hotel sector. The company operates 30 hotels in Indonesia (7), Japan (5), the Philippines (13), and Thailand (5) for a total of 4,779 rooms. These hotels employ 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
Date: 18 July 2019