Asia based budget hotel operator Red Planet has pocketed $70 million in funding from Goldman Sachs to move ahead with its expansion plans.
The funding will enable Red Planet to add to its existing portfolio of 26 hotels.
It currently operates budget hotels in Japan, Thailand, the Philippines, and Indonesia and already has plans in place to add an additional 10 within the next two years.
"We have a well-diversified portfolio over four countries and have developed a highly systemised brand. 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 CEO 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."
Red Planet has so far raised $240 million in funds in the last five years.
"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," said Jonathan Vanica, managing director at Goldman Sachs.
