Red Planet, the Asian budget hotel chain, has secured US$70 million of funding from Goldman Sachs, enabling it to move ahead with its regional expansion plans.
The company currently owns and operates a portfolio of 26 economy hotels in Japan, Thailand, the Philippines, and Indonesia, and the new funding will see it add a further 10 hotels over the next 24 months.
Red Planet’s CEO, Tim Hansing, said the investment would also help to close a final round of private investor equity, which will in turn support the future growth of the brand.
“We have a well-diversified portfolio over four countries and have developed a highly systemised brand,” Hansing said. “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.
“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.”
Since 2011, Red Planet Hotels has raised US$240m of capital and funds. Jonathan Vanica, a managing director at Goldman Sachs, said he is happy to support “entrepreneurial companies in Asia”. “We anticipate our capital will help Red Planet Hotels accelerate its expansion throughout the region,” he added.
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