GIC, Booking invest $180m in Korea's Yanolja

Yanolja was founded in 2005 as an information and booking portal for small and medium-sized accommodations such as motels and guesthouses. Along with this service it now operates more than 200 hotels in Korea and is best known for its line of upscale love hotels, which provide short-term rentals aimed at couples or travelers.

Love hotels have traditionally faced a stigma in Korea, viewed as seedy and associated with infidelity and prostitution. Yanolja has sought to dispel these stereotypes through bright, modern décor and high maintenance standards, and by marketing itself as a place where young couples that are living with their parents can enjoy privacy, or where tourists can rest for a few hours.

The company has raised several rounds of PE funding from the likes of Partners Investment, SL Investment, and Skylake Investment. Its new round of investment is aimed at supporting international expansion, CEO Kim Jong-Yoon told Reuters, citing limited growth capabilities in the relatively small domestic market.

Yanolja has already made strategic investments in Southeast Asia, most notably in Singapore-based peer Zen Rooms. The company committed $15 million to Zen last year for a significant minority stake, with the right to acquire 100% of the start-up in the future.

The new investment also includes a strategic partnership with Booking. Yanolja users will have access to worldwide hotel booking services, while Yanjola’s accommodations will be listed on Booking’s platforms. Booking has established several collaborations with Asian technology companies since last year, including Southeast Asia ride-hailing app Grab and its Chinese counterpart Didi Chuxing.

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• Topics
• North Asia
• Consumer
• Technology
• Expansion
• South Korea
• GIC Private
• TMT
• Growth capital