By Denise A. Valdez
THE PHILIPPINES is boosting the growth of hotel management start-up RedDoorz as it races to become its second largest market a year since the platform entered the country.
The four-year-old company is now undergoing Series C funding, and has so far raised $70 million in its first close last month.
For Liviu Nedef, senior vice-president for marketing and communications, RedDoorz has only reached the tip of the iceberg.
“We’re now in four countries in the region, but we believe we’re just at the tip of the iceberg. We focus just in Southeast Asia, and Southeast Asia as a region provides massive opportunities for a company like us,” he said in a briefing in Makati City last week.
RedDoorz launched its services in Indonesia in October 2015, which is also the biggest market the company has today. It entered Singapore in January 2017, the Philippines a year after, and Vietnam in July 2018.
The company provides management and booking services to hotels rated three stars and below, residential properties and condominium units, with the goal of offering affordable accommodations to travelers, and technology solutions to property owners.
Mr. Nedef said RedDoorz now has 1,400 properties in its four-country network, and sees the potential to tap about 120,000 more across Southeast Asia for the kind of properties that suit its business case.
“We’re just at the beginning of our journey, and we’re very excited about the prospects, he said.
RedDoorz has so far hit its 500,000th occupied room milestone in July, and the target is to reach its one millionth occupied room by the end of the year. To achieve this, RedDoorz Country Head for the Philippines Stefanie Irma said the Philippines will play an important role.
“I believe that in a regional perspective, to achieve one million room (bookings), we need help from every country to boost this up. And the Philippines is the second largest that we have right now,” she said.
The company plans to expand its presence in the country to 30 cities by December from 20 cities at the moment, and to beef up its pool to have 500 properties by yearend from 200 at present.
Ms. Irma said the growth of RedDoorz in the country has so far doubled since January, and the potential remains big for the rest of the major cities such as Bohol, Palawan and Boracay. It also encourages the company that 70% of its customers are repeat guests.
“The Philippines is a super important market for us. We have a growing presence and the business is doing very well,” Mr. Nedef said.
Moving forward, RedDoorz is seeking to enter new markets in Southeast Asia as it takes on a full expansion mode.
“We are in a Series C (funding) right now. We are moving from a stage where we have a start-up to the growth stage itself,” Ms. Irma added.