RedDoorz pushes budget hotel occupancy rates to 82%

Mr Saberwal is the founder of RedDoorz, a budget hotels start-up that is shaping up to be south-east Asia’s answer to India’s Oyo — a $5 billion venture backed by the SoftBank Vision Fund. In only six years, Oyo has become one of the world’s largest hotel chains by bringing thousands of small, often family-run establishments into one network under a single brand. RedDoorz looks well on its way to replicating that success in its own region. But before Mr Saberwal founded his venture in a Jakarta café, he was a career hotelier who felt stuck in a rut. In 2005, determined to spice things up, he joined what was then a small Indian online travel company called MakeMyTrip. Five years later, the start-up carried out a $70 million initial public offering on New York’s Nasdaq exchange, and Mr Saberwal moved to Singapore as its chief business officer… Mr Saberwal decided to set out on his own, having seen first-hand “the power of how online could disrupt hotels”… Now, RedDoorz is quickly emerging as a challenger to Oyo… Like Oyo, RedDoorz’s business proposition is simple. It gathers cheap hotels under one banner, either as lessors or franchisees… According to the founder, occupancy rates in budget hotels typically stand at about 40 per cent to 45 per cent, but after joining RedDoorz the rates climb to 82 per cent on average.
 
Shotaro Tani (Nikkei staff writer)

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