Online budget hotel booking chain RedDoorz is investing more than $5 million in the Philippines, its third market in Southeast Asia, while the Philippines government is planning to issue Samurai bonds later this year.
Singapore’s RedDoorz enters Philippine market with $5m investment
Singapore-headquartered online budget hotel booking chain RedDoorz has expanded into the Philippines, its third market in the Southeast Asia region, with an investment of more than $5 million over the next 12 months.
In a statement, RedDoorz said, it expects to grow its footprint to 100 properties across the Philippines, a market that the company describes as having a strong demand for hotel rooms not only for tourists but also for business travelers.
“We felt that it was timely for us to make the conclusive move to start expanding here – especially seeing how boisterous the budget hospitality sector has been in recent years,” Amit Saberwal, Founder and CEO, RedDoorz, said.
Launched in 2015, RedDoorz has expanded rapidly garnering over 500 properties and servicing over 700,000 stayed room nights thus far in the region. It is present in over 16 cities in Indonesia alone with over 3,000 hotel rooms on its platform and has a team strength of close to 180 people.
Last March, it announced raising $11 million in its pre-series B funding round backed by existing investors, including the International Finance Corporation.
Philippines eyes $1bn Samurai bonds issuance this year
The Department of Finance (DOF) has confirmed that the government is considering the issuance of about $1 billion yen-denominated debt, or Samurai bonds, in the second half of this year, state-run Philippine News Agency has reported.
Finance Secretary Carlos Dominguez announced the development, saying the plan is in line with the government’s efforts to diversify its bond portfolio. In the first quarter of 2018, the Philippine government successfully floated dollar- and renminbi-denominated securities in the offshore markets.
The Philippines last sold Samurai bonds in 2010 worth $2.5 billion, which allowed the government to complete its commercial funding exercise that year.
The DOF earlier instructed the Bureau of the Treasury (BTr) to study the economics of selling Samurai bonds to allow the government to access Japanese capital. Samurai bonds provide the issuer access to Japanese capital, which can be used for domestic investments or for financing operations outside Japan.