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RedDoorz, a Singapore-based operator of a website that lets people book budget hotels, has now decided to directly lease hospitality properties and manage these under its brand, reported the Business Times.
In fact, it recently opened its first leased property here at a shophouse in East Coast Road. The 65-room hotel sports Peranakan-style interiors that showcases the city-state’s rich history during the colonial period.
Overall, the start-up intends to launch 100 hotels operating under this concept across Southeast Asia, with its second one opening in Indonesia as early as May 2018.
To finance this “aggressive regional expansion”, RedDoorz has amassed US$11 million (S$14.51 million) in pre-Series B funding. Among its investors are UOB-backed InnoVen Capital, Shanghai-based FengHe Group, Sushquehanna International Group’s Asia Investment Fund and World Bank Group’s private investment division International Finance Corp.
“With the new leased-property model, we can manage the property to our best ability, ensure a constant revenue flow for the property owner, offer the most efficient rates to the end-user, and provide the customer with a much better user experience, because we manage the entire spectrum now,” said RedDoorz Founder and CEO Amit Saberwal.
He revealed that RedDoorz will train hotel employees in technology, communication, customer service and cleaning to ensure a “uniform level of service” across it hotel network.
“One of the most common customer complaints is getting unclean rooms or rooms different from what they were promised. With our own properties, we will have full rein over the day-to-day operations.”
“The new leased model is also a great model for property owners who are sitting on properties that have probably been handed over to them via family legacy and are no longer a core business area for them. We partner such people to help them keep their business alive and kicking.”
Saberwal added that RedDoorz has provided franchising and marketing services so far for more than 500 budget hotels in Singapore, Indonesia and the Philippines.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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