Tune Group-ECM Libra joint venture buys 50% in SubHome
KUALA LUMPUR: Tune Group and ECM Libra Financial Group Bhd, via joint venture vehicle Tune Plato Ventures Sdn Bhd, have collectively acquired a 50% stake in Malaysian home-sharing platform SubHome Management Sdn Bhd.
The value of the acquisition was not disclosed, though Tune Group is to play a supportive role to SubHome by providing operational support and controls through systems, processes, and expertise at Tune Hotels, as well as the eventual listing of SubHome rooms across Tune Group’s travel accommodation platforms.
In addition, the partnership will significantly help SubHome to scale, enabling them to work closely with key distribution partners such as AirAsia, Tune Hotels, and VIDI, while granting SubHome operational leverage with customer support, loyalty, and property management.
SubHome manages and markets a portfolio of home rentals and offers hotel-like services to vacation and business travellers looking for alternative, value-for-money lodging.
Commenting on the launch of SubHome at The Robertson Bukit Bintang yesterday, Tune Group co-founder Tan Sri Tony Fernandes said Tune Hotels and SubHome share synergies as Tune Group will be able to offer its extended-stay guests and families larger, more amenity-filled rooms.
“Tune invests in exciting businesses that have enormous disruptive potential and synergies with our portfolio.
“Everyone loves a good deal and SubHome offers just that by giving guests the opportunity to stay in suitelike accommodations at attractive prices without compromising on key guest experience and customer support functions, such as front-desk services and daily housekeeping.
“SubHome offers homeowners and developers and alternative channel to monetise their properties and increase lodging choices for value-conscious travellers and loyal Tune Hotels guests,” he said.
The home-share market has proved a popular option for investors seeking yield, but many are put off with the day-to-day operational requirements and hassles of managing and marketing the property.
Hence, the SubHome platform offers a turnkey solution with a complete suite of services ranging from assistance with refurbishment, listing, marketing, ongoing property maintenance and guest enquiries.
SubHome co-founder and CEO Sandeep S. Grewal targets to grow from the current 417 keys in Malaysia to 3,000 keys by end-2019.
This will include new cities, like Kota Kinabalu, as well as Bangkok and Chiangmai in Thailand.
“The SubHome business model is exciting as it offers a solution to developers that have existing or unsold inventory, to convert them into revenue generators.
“SubHome is collaborating closely with property developers in Malaysia and across the region to provide a hospitality solution in their developments, just like with Gamuda at The Robertson Bukit Bintang.
“This gives SubHome immediate scale whilst alleviating developer concerns over excess inventory,” said Sandeep.
To extend distribution reach, SubHome makes its portfolio available on a variety of channels such as Airbnb, Booking.com, Agoda, and SubHome.my website.