favstay Pte. Ltd., a Thai hospitality start-up offering condos and villas for rent in Thailand’s top destinations, has secured a US$1 million investment from Thailand-based, global hospitality company Dusit International.
The investment, made as part of favstay’s US$2.88 million (THB 100 million) Series A investment round, will see Dusit have a 9.24 percent stake in the promising startup, which offers a distinctive alternative to more typical online rental platforms like Airbnb by providing property owners with a comprehensive range of services such as property photo shoots, property management, housekeeping, and room maintenance, and renters with a customer service platform providing location-specific information and services like check-in and check-out.
Established in 2015, favstay has over 11,000 properties listed on its platform in Thailand. The Series-A investment will fund an aggressive expansion strategy that will see favstay increase listings 6x and expand to Vietnam, Myanmar, Indonesia, and Cambodia in 2017 alone, with sights on further Asian expansion in subsequent years. The company will also continue its focus on differentiating itself via a consolidation of guest and property owner relations in one single platform, with additional support services offered to both for a more complete guest and owner experience.
Dusit International’s investment is in line with the company’s strategy for sustainable and profitable growth which, alongside doubling its rooms worldwide and balancing its portfolio of hotels to include half of its operations outside of Thailand by 2022, includes diversifying its lines of business to receive approximately ten percent of total revenue from new investments in hospitality related industries.
Ms. Suchada Taechotirote, co-founder and CEO of favstay, said, “Consumer trends are shifting, and at favstay our vision is to support cultural and creative tourists who wish to experience local communities in each destination. Dusit is the investor to help us achieve this vision.”
“Everyone knows Dusit as a highly recognizable and respected brand,” added Mr. Natavudh Pungcharoenpong, co-founder of favstay and CEO of popular e-book store Ookbee. “Dusit was on our shortlist of investor targets at this critical stage and we are excited to exchange knowledge and collaborate for a successful future.”
Ms. Suphajee Suthumpun, Group CEO of Dusit International, said, “This partnership will change the landscape of hospitality, both in Thailand and beyond, and we are delighted to play a leading role in this positive disruption. favstay’s ability to combine beautifully curated properties with a seamless customer interface and concierge service are recipes for success not found from other providers. This focus on quality complements our own approach to hospitality, and we are confident the platform will continue to increase in scale and reach.”