MANILA -- Singapore-based budget hotel chain RedDoorz is set on an aggressive expansion in the Philippine market, eyeing to be located in 250 properties in major cities in the country this year.
RedDoorz Chief Operating Officer Rishabh Singhi said in an interview Thursday that the company sees great potential in the Philippines, along with other Southeast Asian markets, with their growing tourism sectors and the demand for affordable accommodation inevitably generated.
Unlike traditional hotels, RedDoorz does not operate and own properties. The company partners with small and unbranded hotels, as well as property owners that can offer at least 15 rooms to be branded as RedDoorz.
Partner hotels and property owners will use RedDoorz’s technology for booking guests and will adopt the standard of services RedDoorz offers.
“We enable these small, unbranded, and faceless hotels to have a brand, and have a stable financial income for the property owners. We are also providing training for the staff,” Singhi said.
“And for the customers, it’s a more standardized affordable accommodation option,” he added.
According to Singhi, 80 percent of the revenue goes to the property owner and the remaining 20 percent, to RedDoorz.
The hotel chain has three brands including RedDoorz, which offers the cheapest rate; RedDoorz Plus, which is rated two-star to three-star; and RedDoorz Premium, which is rated up to four-star.
Since RedDoorz started its operation in the Philippines in mid-2018, Singhi said it is currently in 100 properties in Metro Manila, Pampanga, Cebu, and Davao. Its expansion for this year eyes to boost its presence in these four locations and will open in new areas, such as Bohol, Boracay, and Iloilo.
The company is also in talks with the biggest developers in the country to host RedDoorz brands, he said.
“We are in talks with the few of them. We’re going to bring in hotel inventory in prime locations in the Philippines,” Singhi added. (PNA)
