Following its last fund raise of US$70 million, and as had been flagged by CEO and co-founder, Amit Saberwal, RedDoorz has launched a new co-living brand, KoolKost, which it describes as “an affordable, long-term fully managed community living service that allows customers to rent rooms under flexible leases”.
In an interview last August after its fund raise, led by Asia Partners, Saberwal, speaking about a possible move into other models, had said, “If we get into co-living we will reinvent it. Right now, it’s a real estate play. There is some merit to look at it for longer stays.”
KoolKost launches with a network of over 100 properties in 14 cities across Indonesia. Described as “flexible, quality, community-type living spaces focusing on living experience, convenience and comfort for young professionals and college students in major metropolitan cities in Indonesia”, it says spaces have been selected based on set criteria, and using RedEagle, RedDoorz’s intelligent property discovery and acquisition tool.
Said Saberwal, “Indonesians are no strangers to the concept of co-living with ‘Indekost’, or ‘kost’ for short, having been around in the Indonesian market for a long time. A kost is a room rented out by a landlord, in a large house with spare bedrooms and shared living spaces including dining rooms, bathroom, and kitchen.
“Kosts are much like the co-living spaces we see today, a booming sector in the South-east Asian market. In Indonesia, we identified a growing trend that have made co-living an increasingly attractive option for millennials and Gen Z’s.
“According to JLL’s 2019 Co-living in Costly Cities – Asia Pacific report, urbanisation rates and urban population rates will continue rising and Indonesia is expected to be one of the three biggest areas of growth in urban population over the next 15 years. Coupled with ongoing infrastructural issues like traffic congestion and rising property costs, more and more millennials and Gen Z’s are finding it difficult to buy and own a property. They are also likely to want to live closer to their workplaces to avoid longer commutes.
“When we spotted these pain points, we realised the market opportunity, to offer affordable co-living spaces with flexible leases – a natural extension of what the brand already has to offer. We are leveraging on our experience and expertise within the hospitality space and building upon our deep understanding of the Indonesian consumer to roll out a new solution that we believe is much-needed.”
The company said that KoolKost by RedDoorz addresses the supply-demand gap in the long-term rental housing space and eliminates the unnecessary hassle of having to pay hefty deposits, worry about contract lock-ins or stress over unpredictable living conditions like maintenance, furnishing, and unreliable housekeeping.
The new service operated by RedDoorz provides 24-hour customer service, complimentary high-speed WiFi access, essential room cleaning, and unlimited filtered drinking water. All rooms in a KoolKost are en-suite with a personal bathroom, and are equipped with high-quality furnishings and fittings including a premium bed topped with a comfortable mattress, clean, crisp fitted linens and a wardrobe to provide ample storage space.
Welcoming the launch, Hengki Manurung, deputy assistant of Tourism Investment Ministry of Tourism and Creative Economy said, “This launch is the response of RedDoorz management in anticipation of the government’s request to divide the hotel and kost business, with the purpose of better managing the hotel business ecosystem, make it more profitable, and to create a more structured kost business in Indonesia.”
With the company’s RedPartners platform, owners can control their inventory, track and consolidate bookings, manage end-to-end operations, and provide guests with an excellent long-term living experience, leading to increased revenue. A pilot programme saw an average uplift of more than 30% in occupancy.
Christian Adiwena, owner of KoolKost @ AEON BSD, South Tangerang, said that since taking part in the pilot programme, his kost has seen a 50pc increase in occupancy. “KoolKost helps me to market my properties to a wider audience. In addition to improving the layout and updating the rooms with quality furniture, we’ve managed to optimise operations and increase returns through the use of RedDoorz’s tech solutions.”
The launch comes with KoolKost’s new brand identity and vision, with a new visual identity and supporting strapline; KoolKost, welcome home, and KoolKost will be launching its own dedicated website for bookings starting March.
Saberwal said having KoolKost would not dilute RedDoorz’ focus, rather it’s “more a case of diversifying our portfolio with a new offering, especially as the RedDoorz brand continues to grow and evolve. Both KoolKost and RedDoorz share the same values, to offer quality living spaces at affordable prices for guests”.
While there is a dedicated team under KoolKost, the company is also leveraging upon RedDoorz talent with their experience in the travel accommodation vertical. “Not only can we tap into our experience in the hospitality space, but can also fully leverage our proprietary technology solutions such as RedPartners.”
He said that the company would focus on growing KoolKost in Indonesia for now. “As always, we are careful to not spread ourselves too thin, too far, too fast, and take a more methodical approach.”
• All images credit: RedDoorz
