RedDoorz has launched a new mid-scale brand, Sunerra Hotels, as part of its bid to become Southeast Asia's largest hospitality company.
The first property launched in Jakarta, Indonesia, earlier this month.
This is the fourth brand in its stable following the launch of economy brand SANS Hotels last November.
The Singapore-based company also has extended stay co-living brand KoolKost and its bread-and-butter RedDoorz brand.
RedDoorz wants to “become an ecosystem of multiple hospitality and accommodation products, each of them backed by distinct brands and catering to the different needs of consumers in South-east Asia: from no-frills budget stays to more design-inspired better experiences and even extended stays offerings."
If that sounds familiar, that’s because that’s also the vision of multi-brand traditional hospitality companies such as Marriott, Accor and Hilton, the companies that RedDoorz, when launched seven years ago, wanted to disrupt.
Amit Saberwal, CEO of the company says it wants to make sure it has a "solution for every asset owner, including mid-scale.”
RedDoorz found that its tech solution that was powering the economy segment could scale across different demographics, and Saberwal believes that its underlying tech play will differentiate the company “so that it looks more like RedDoorz and less like a traditional hotel company."
“The brand will evolve in its own way, as time goes by, and we will get smarter as we virtualize the experience more.”
Sunerra’s business model is a “pure management contract with sign-up fee, technical fee and brand fee. RedDoorz provides the general manager. There is more human intervention,” says Saberwal.
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He adds that RedDoorz continues to be the bread and butter of the business and estimates that SANS makes about two-and-a-half times more per unit, Sunerra is projected at three to five times more while KoolKost is about half.
Commenting on current challenges, Saberwal says: “We are here for the longhaul. When this started, we said we were prepared for the end of 2022, maybe end 2021. The way we do business has changed completely. We are focusing on, and solving, property owners’ problems in different ways than before.”
Its key markets of Indonesia and the Philippines are holding up in spite of the pandemic.
“Indonesia’s balanced approach of public health and economy meant that people got confident with travelling,” he adds.
He added: “Despite the difficult macro environment of last year, we remain deeply committed to building the future of hospitality in South-east Asia and Sunerra brings us closer in realising our ambitious vision for the company and the region.”
* This article originally appeared on WebinTravel.