Online budget hotels booking platform RedDoorz has expanded into the Philippines – its third market in South-east Asia – after Singapore and Indonesia.
The company will invest US$5 million to tap into the dynamic growth of the budget hospitality and travel sector in the Philippines, where its intends to grow its footprint to 100 properties across the country over the next 12 months.
Amit Saberwal, founder and CEO, RedDoorz, said in a statement: “Our expansion into the Philippines came as a natural progression for RedDoorz, where like our first market in Indonesia showed many similarities and thus the potential for a vibrant domestic travel and hospitality industry.
“Following our fresh funding earlier this year, we realised that the Philippines held a strong demand for hotel rooms not only for tourists but also for business travellers. We felt that it was timely for us to make the conclusive move to start expanding here – especially seeing how boisterous the budget hospitality sector has been in recent years,” he added.
Along with its entry into the Philippines, RedDoorz has also introduced a new category of properties, RedDoorz Premium, a selection of properties targeting budget business travellers with their strategic locations close to business districts and wider amenity offerings than the existing RedDoorz and RedDoorz Plus categories on the platform.
The addition of the Premium properties was driven by the “remarkable growth” observed of the Filipino ‘condotel’ concept over the past decade, said Rishabh Singhi, COO of RedDoorz.
“The aim of this new category is to target the business traveller who looks for certain amenities like good Wi-Fi connection, location closer to business districts and other amenities. We see this as a strong category as we expand into other South-east Asian cities where there is an influx of business travellers.” he added.
Headquartered in Singapore, RedDoorz recently raised its Pre-Series B round of US$11 million as an additional investment from Asia Investment Fund of Susquehanna International Group, International Finance Corporation (private investment arm of World Bank Group), InnoVen Capital (venture lending firm owned by Temasek Holdings and United Overseas Bank), and Jungle Ventures – all of which had invested in past funding rounds. This fundraise also saw new investors DeepSky Capital, FengHe Group and Hendale Capital, among others.