ECM, Tune acquire 50% stake in SubHome

TheEdge Wed, Sep 26, 2018 10:18am - 5 years View Original


KUALA LUMPUR: ECM Libra Financial Group Bhd and Tune Group Sdn Bhd have teamed up to acquire a 50% stake in SubHome Management Sdn Bhd, a home-sharing platform.

SubHome manages and markets a portfolio of home rentals and offers complete hotel-like services to vacation and business travellers looking for alternative lodging.

Tan Sri Tony Fernandes, co-founder of Tune Group, said SubHome offers homeowners and developers an alternative channel to monetise their properties and increase lodging choices with a suite-like accommodation for value-conscious travellers, as well as loyal Tune Hotel guests.

SubHome lists its units on its own website. It also extends its distribution reach by listing on other channels such as Airbnb, Booking.com and Agoda.

As part of the partnership, SubHome will also be listing its units on Tune’s accommodation portals, said SubHome co-founder and chief executive officer Sandeep S Grewal.

“This partnership helps significantly with our ability to scale, enabling us to work closely with key distribution partners such as AirAsia, Tune Hotels and VIDI travel platform, while granting SubHome operational leverage with customer support, loyalty, and property management,” Sandeep said at the event yesterday to announce the partnership.

The announcement was made by the companies at The Robertson, Kuala Lumpur where SubHome operates 200 units.

In total, SubHome operates 417 units currently spread around here and Johor Bahru.

Sandeep said 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 essentially offers a turnkey solution to developers with a complete suite of services ranging from assistance with refurbishment, listing, marketing, on-going property maintenance and guest enquiries.

He added that SubHomes will continue to collaborate with property developers in Malaysia and across the region to provide a hospitality solution in their developments, just like with Gamuda Bhd in Robertson, he added.

“Moving forward, Tune and ECM Libra want us to scale bigger. We had previously targeted about 40-60 units per building, but now we want to list more,” said Sandeep.

He said for 2019, SubHomes aims to target 3,000 units and also plans to venture outside of Malaysia by end-2019, particularly Bangkok and Chiang Mai in Thailand.

“For the near term, we are aiming at expanding to Selangor, Penang and Kota Kinabalu,” he said.

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