Tune Group-ECM Libra JV enters home-sharing biz

SubHome is looking to expand to 3,000 properties in 2019 and is set to enter Thai market

by RAHIMI YUNUS / pic by ISMAIL CHE RUS

TUNE Group Sdn Bhd and ECM Libra Financial Group Bhd have set up a joint venture (JV), Tune Pluto Ventures Sdn Bhd, to move into the home-sharing business via a 50% stake acquisition in SubHome Management Sdn Bhd.

The partnership will expand the range of accommodation offered by Tune Hotels and enable SubHome to accelerate its growth in the home-sharing space.

“It is about being able to provide all the services and the types of accommodation that consumers require across the board and allowing them to make a choice,” Tune Hotels CEO Mark Lankester said at the launch of SubHome’s flagship units at The Robertson in Kuala Lumpur yesterday.

SubHome co-founder and CEO Sandeep Singh Grewal did not disclose the value of the 50% stake sold, but said the synergy from the Tune

Group-ECM Libra JV also offers other inputs and resources beyond funding value such as technology and experience in the hospitality business.

Sandeep said SubHome provides a turnkey solution to property owners, in which all aspects of home-sharing operations including refurbishment assistance, listing, marketing, housekeeping and ongoing maintenance are managed by the company.

Sandeep, who is also a renowned property investor, said SubHome adopts a revenue sharing model of 60:40 ratio distributed to landlords and the company respectively. SubHome currently lists its portfolio on various channels including Airbnb, Booking. com, Expedia, Agoda and few others, along with key distribution partners AirAsia Bhd, Tune Hotels and Vidi.

“Sandeep’s platform offers homeowners and developers an alternative channel to monetise their properties and increase lodging choices with a suite-like accommodation for value-conscious travellers and loyal Tune Hotels guests,” Tune Group co-founder Tan Sri Dr Tony Fernandes, who was also present at the launch, said.

Founded in 2016, SubHome now has 417 units under its portfolio spreading across Kuala Lumpur and Johor Baru, including 200 suites at The Robertson. The Robertson is SubHome’s first portfolio of such a scale that manages 25% or 200 units of the total 800 units at the apartments.

The company normally only manages 40 to 60 units per building.

Sandeep said SubHome is looking to expand to 3,000 properties in 2019 and is set to enter the Thai market, particularly Bangkok and Chiang Mai, by the end of next year.

SubHome, which offers accommodation at an average rate of RM250 per night, is also increasing its presence locally, particularly in Petaling Jaya.

The company also plans to venture into Penang and Kota Kinabalu in the near term.