Budget hotel manager RedDoorz leverages technology for success

SINGAPORE (EDGEPROP) - Budget hotel management companies in Southeast Asia are grabbing market share in the region’s affordable hotel industry. They are disrupting the three-star-and-below hotel segment, transforming the previously fragmented hotel inventory into standardised, affordable accommodations under brands such as RedDoorz, Oyo, and Zen Rooms. Backed by major venture capital funds, these companies leverage technology platforms to help them rapidly scale up their businesses.
Homegrown start-up RedDoorz is one of the top players in this competitive industry. The company has already raised close to US$140 million ($190.8 million) from investors such as Rakuten Capital, Qiming Venture Partners, and the International Finance Corp. Its latest round of funding in August this year saw it raise US$70 million at the close of its Series C funding, led by Singapore-based equity firm Asia Partners.
Amit Saberwal, CEO and co-founder of RedDoorz, prefers to keep the company nimble and scalable to technology (Picture: Samuel Isaac Chua/EdgeProp Singapore)
RedDoorz was co-founded in 2015 by Amit Saberwal, who is CEO of the company, and Asheesh Kunwar Saxena, who is the firm’s CTO. The start-up has grown five-fold y-o-y and is in more than 100 cities across Indonesia, Singapore, the Philippines, and Vietnam. In September this year, the company announced that it has achieved about 600,000 occupied room nights per month across its network of more than 1,500 hotel properties and is on track to increase the number of hotel rooms it manages to one million by the end of this year.

Fast-paced growth strategy

According to Saberwal, a fast-paced growth strategy has been the company’s modus operandi since its inception. “We didn’t want to go the traditional hospitality model of moving into one property at a time, first building it, then franchising or managing it. It didn’t sound revolutionary enough,” he says.
A hospitality graduate from India, Saberwal was director of sales and marketing at The Park Hotels in Bangalore and New Delhi, before stepping up in 2005 as chief business officer of online travel booking site MakeMyTrip.com. He was part of the leadership team that led the company to its successful listing on the Nasdaq in 2010.
Saberwal saw a gap in the Southeast Asian hotel market during his tenure at MakeMyTrip. “I realised how under-penetrated...