DoubleDragon Properties Corp. said it will raise as much as P12.2 billion in sales over the next two years from the hotel business under the Hotel101 brand.
DoubleDragon said in a disclosure to the stock exchange it would launch four Hotel101 projects and start pre-selling this year. The hotels are situated in Davao, Boracay, Bohol and Palawan.
DoubleDragon has secured a license to sell the hotel units from the Housing and Land Use Regulatory Board for its Hotel101 in Davao.
Located in Ecoland, Matina, Davao City Hotel101-Davao will be the biggest hotel in Mindanao offering a total 519 rooms.
Construction of the project is in full swing. It slated for completion by the end of next year.
“We envision Hotel101 to become the largest and most recognized hotel chain in the Philippines in service and value, while likewise significantly contributing to the recurring income of DoubleDragon, and at the same time providing the market with an investment backed by a condominium title,” said DoubleDragon chairman Edgar Sia II.
“Hotel101 provides the optimum balance for DoubleDragon as our offices, malls and warehouses are recurring revenue sources which start pouring in upon their respective completion, while for Hotel101, DoubleDragon derives revenues twice- firstly, from the pre-selling of the units during the construction phase and secondly, once the projects are completed the properties start to generate steady recurring revenues from the hotel operations,” Sia added.
Hotel101 is the flagship homegrown hotel brand of DoubleDragon it will make up majority of the 5,000 hotel rooms that DoubleDragon plans to include in its portfolio by 2020.
Hotel101 Davao is the third Hotel101 project to be launched by DoubleDragon. The company previously launched Hotel101-Manila, which was sold out prior to its opening, and Hotel101 Fort, which has achieved record sales of P1.86 billion since its launch just barely a year ago.
“We have already started to tap international markets with newly-formed sales teams in Europe and Singapore and we have appointed Leechiu Property Consultants Inc. to act as wholesale agent focused on marketing blocks of Hotel101 units to institutions such as pension funds, retirement funds, mutual funds, insurance companies looking to diversify their portfolios in real estate investments that offer a steady stream of recurring income backed by condominium unit titles,” said DoubleDragon chief investment officer Hannah Yulo.