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Tune Group and ECM Libra venture into home sharing business

SubHome_LYY.JPG

KUALA LUMPUR (Sept 25): Tune Group Sdn Bhd and ECM Libra Financial Group Bhd, via their joint venture company Tune Plato Ventures Sdn Bhd, have acquired a 50% stake into home-sharing platform SubHome.

The companies announced the investment today at The Robertson Bukit Bintang here today, where SubHome operates 200 units. 

Tune Group co-founder Tan Sri Tony Fernandes said Tune Hotels and SubHome share great synergies and the former invests in “exciting businesses that have enormous disruptive potential and synergies with our portfolio”.

"[SubHome] offers homeowners and developers an alternative channel to monetise their properties and increase lodging choices with a suite-Iike accommodation for value-conscious travellers and loyal Tune Hotels guests," he said.

"We will be able to offer our extended-stay guests and families larger, more amenity-filled rooms and provide [the platform] with operational support and controls through systems, processes and expertise at Tune Hotels," he added.

Currently, SubHome manages 417 homes across Kuala Lumpur, Petaling Jaya, Penang and Johor Bahru, said its co-founder and CEO Sandeep Singh Grewal.

Going forward, the platform is looking at growing its portfolio exponentially and aims to achieve 3,000 keys by end-2019.

While the platform aims to expand within the local market, it is also planning to spread its wings abroad to countries such as Thailand, where the hospitality sector is very strong and vibrant, he added.

“SubHome commenced operations in 2016. Since then we have been able to provide a viable solution to landlords in this soft rental market. No longer are the units left empty for months or owners having to compete to join the price war with other landlords for the small pool of tenants. Plus, we take all the operational pain away from the property owner to make this truly a hands-off investment," he said.

"This partnership with the Tune Group helps significantly with our ability to scale, enabling us to work closely with key distribution partners such as AirAsia, Tune Hotels and VIDI whilst granting SubHome operational leverage with customer support, loyalty and property management," he added.

SubHome manages and markets private home rentals based on a revenue-sharing mechanism with home owners, of which home owners are entitled to 60% of the revenue while SubHome takes the remaining 40%.

With an average price of RM250 per night, all units listed on SubHome are at least 500 sq ft and offer fully-equipped kitchens, smart TVs, WiFi, safe boxes and ironing facilities, while services inclde daily housekeeping, linen and front-desk services.

SubHome's properties are available via channels such as Airbnb, Booking.com, Agoda and its own website SubHome.my.

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