Singapore budget hotel startup gets $70 million in fresh funding

Singapore Budget Hotel Startup Gets $70 Million In Fresh Funding

Singapore-based hotel startup RedDoorz, which provides affordable lodging in Southeast Asia, has raised $70 million from investors it intends to use for its further expansion in the region.

The Series C funding round was led by Singapore-based private equity firm Asia Partners and includes Japan’s Rakuten and South Korea’s Mirae Asset-Naver Growth Fund. It comes just weeks after the startup confirmed its $45 million Series B round, led by China’s Qiming Venture Partners.

The rapid fundraising underscores investors’ growing interest in the budget accommodation business in Southeast Asia, which is forecast to become a $36 billion market by 2025, according to a report by Google and Singaporean sovereign wealth fund Temasek.

RedDoorz opened its first branded hotel in 2015 in Jakarta and has since expanded to the Philippines, Vietnam and Singapore. Overall, the startup raised $140 million since its inception and currently lists 1,400 standardised hotel properties in more than 80 cities on its platform.

The fresh funds will be used to move into Thailand and Malaysia and also to open a second data center, possibly in Vietnam. It would also strengthen RedDoorz to compete with Indian rival Oyo, which is also expanding in the region and now plans to move into Indonesia, RedDoorz’s largest market.

RedDoorz innovative approach to the hotel business is that it gathers independent budget hotels under one banner. The properties vary in quality, but RedDoorz seeks to hold them to common standards, insisting on clean sheets and towels, reliable Internet service and safe drinking water.

Similar to a franchise network, hotel owners operating under the RedDoorz brand are able to grow their business and increase revenues while streamlining their operations.

Being technology-centered, RedDoorz said its solutions help partners manage distribution, pricing, marketing, customer experience and technology solutions by offering an end-to-end platform powered by advanced technology infrastructure.

Its proprietary system provides big-data analysis to predict demand and set room rates accordingly, while the group’s independent hoteliers benefit from economies of scale, helping them to hold costs down.

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Singapore-based hotel startup RedDoorz, which provides affordable lodging in Southeast Asia, has raised $70 million from investors it intends to use for its further expansion in the region. The Series C funding round was led by Singapore-based private equity firm Asia Partners and includes Japan’s Rakuten and South Korea's Mirae Asset-Naver Growth Fund. It comes just weeks after the startup confirmed its $45 million Series B round, led by China's Qiming Venture Partners. The rapid fundraising underscores investors' growing interest in the budget accommodation business in Southeast Asia, which is forecast to become a $36 billion market by 2025, according...

Singapore Budget Hotel Startup Gets $70 Million In Fresh Funding

Singapore-based hotel startup RedDoorz, which provides affordable lodging in Southeast Asia, has raised $70 million from investors it intends to use for its further expansion in the region.

The Series C funding round was led by Singapore-based private equity firm Asia Partners and includes Japan’s Rakuten and South Korea’s Mirae Asset-Naver Growth Fund. It comes just weeks after the startup confirmed its $45 million Series B round, led by China’s Qiming Venture Partners.

The rapid fundraising underscores investors’ growing interest in the budget accommodation business in Southeast Asia, which is forecast to become a $36 billion market by 2025, according to a report by Google and Singaporean sovereign wealth fund Temasek.

RedDoorz opened its first branded hotel in 2015 in Jakarta and has since expanded to the Philippines, Vietnam and Singapore. Overall, the startup raised $140 million since its inception and currently lists 1,400 standardised hotel properties in more than 80 cities on its platform.

The fresh funds will be used to move into Thailand and Malaysia and also to open a second data center, possibly in Vietnam. It would also strengthen RedDoorz to compete with Indian rival Oyo, which is also expanding in the region and now plans to move into Indonesia, RedDoorz’s largest market.

RedDoorz innovative approach to the hotel business is that it gathers independent budget hotels under one banner. The properties vary in quality, but RedDoorz seeks to hold them to common standards, insisting on clean sheets and towels, reliable Internet service and safe drinking water.

Similar to a franchise network, hotel owners operating under the RedDoorz brand are able to grow their business and increase revenues while streamlining their operations.

Being technology-centered, RedDoorz said its solutions help partners manage distribution, pricing, marketing, customer experience and technology solutions by offering an end-to-end platform powered by advanced technology infrastructure.

Its proprietary system provides big-data analysis to predict demand and set room rates accordingly, while the group’s independent hoteliers benefit from economies of scale, helping them to hold costs down.

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