By Arra B. Francia, Reporter
DoubleDragon Properties Corp. will incorporate international subsidiaries that will handle the pre-selling activities of P12.21 billion worth of hotel units in the country starting next year.
In a statement issued Friday, the listed property developer said its board of directors has approved the creation of wholly-owned units to be based in Singapore, Hong Kong, Japan, London, Italy, and the United States.
This is in line with the company’s plan to start selling units from Hotel101 projects in Davao, Boracay, Bohol, and Palawan in 2019.
DoubleDragon said it currently has more than 50 property specialists handling its domestic sales, who helped the company book a 142.9% year-on-year increase in new sales to P1.9 billion across all projects.
Bulk of the sales came from the company’s Hotel101 Fort development in Bonifacio Global City, providing P1.65 billion since its launch last March.
“We are particularly pleased with the performance of our recently set-up in-house sales team that has made a substantial contribution to our revenue and cashflow stream this year,” DoubleDragon Chief Investment Officer Marriana Hannah Yulo said in a statement.
Hotel101 follows the condotel concept, where an investor buys a unit and then hands its over to DoubleDragon for management. The unit owner then gets his share of revenues based on the deal agreed upon by both parties.
The company noted that early unit owners of Hotel101 Manila in Pasay City have already received a 7.04% gross yield on their investment from December 2017 to November 2018.
The expansion of the Hotel101 brand forms part of the company’s goal to have 1.2 million square meters under its leasable portfolio by 2020. Its hospitality segment is projected to contribute 100,000 sq.m to this target from the construction of 5,000 hotel rooms carrying the Hotel101 and Jinjiang Inn Philippines brands.
“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,” DoubleDragon Chairman and Chief Executive Officer Edgar J. Sia II said in a statement.
“(F)or 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 recurring revenue from hotel operations.”
DoubleDragon’s attributable profit grew by 19% to P966.02 million in the first nine months of 2018, following a 16% uptick in gross revenues to P4.72 billion during the same period.
Shares in DoubleDragon jumped 2.25% or 40 centavos to close at P18.18 each at the stock exchange on Friday.