DOUBLEDRAGON Properties Corp. expects to generate P2.33 billion in sales from its newest Hotel101 project in Cebu, which will be developed in partnership with Cebu-based property developer Federated Realty Corp.
In a statement issued Monday, the listed firm said its hospitality unit Hotel of Asia, Inc. (HOA) signed a joint venture agreement with Federated Realty for the development of Hotel101-Cebu, located along Mactan Cebu Airport Terminal Road.
Federated Realty is the property arm of U-Bix Group, whose core business is in the sale and distribution of office machines and other related services.
Hotel101-Cebu, which will stand on a 5,493-square meter commercial lot, will offer a total of 514 rooms, making it the largest airport hotel in the Visayas region. It will also house a convention center and commercial strip.
DoubleDragon now has six Hotel101 developments that will start pre-selling this year, including projects in Fort Bonifacio in Taguig City, Davao, Boracay, Bohol, Palawan, and Cebu. This brings total unit inventory across all Hotel101 buildings to P14.53 billion, which the company expects to fully sell out in the next two years.
The company funds its Hotel101 projects by pre-selling the units during the construction period. Once hotel operations start, it will remit 30% of the rooms’ gross revenues to unit owners, providing investors with a steady stream of income. The company in turn will oversee the management and day-to-day operations of the hotel.
“As hotel room rates and occupancy increases over time, both Hotel101 and its unit owners are positioned to continuously gain financial benefit from their real estate investment,” DoubleDragon Chief Investment Officer Marianna H. Yulo said in a statement.
Hotel101-Cebu completes DoubleDragon’s goal of having 5,000 hotel rooms in its portfolio. Including operating and projects that are still in the pipeline, the company now has 5,082 rooms across the Hotel101 and JinJiang Inn brands, as well as residential condominium units in Skysuites Tower in Quezon City and Ascott-DD Meridian Park in Pasay City.
“DoubleDragon strongly believes in the tourism positive prospects of our country, we are confident that Philippines will surpass 10 million annual tourist arrivals very soon,” DoubleDragon Chairman Edgar J. Sia II said in a statement.
The hotel projects form part of DoubleDragon’s target to have 1.2 million square meters in overall leasing spaces by 2020. Aside from hotel rooms, the company expects to have 100 CityMalls and eight industrial hubs across the country by next year.
DoubleDragon’s net income went up 19% to P966.02 million in the first nine months of 2019, following a 16% uptick in gross revenues to P4.72 billion.
Shares in DoubleDragon slumped 0.44% or 10 centavos to close at P22.40 each at the stock exchange on Monday. — Arra B. Francia