PROPERTY developer DoubleDragon (DD) Properties Corp. has inked a deal to take over the company behind an emerging condotel chain branded as Hotel 101 and the local franchise of Jinjiang Inn.
In a disclosure to the Philippine Stock Exchange on Thursday, DD announced the purchase of the 70 percent stake in Hotel of Asia Inc. (HOA) for P832.17 million, marking a diversification from its shopping mall-oriented business.
HOA – which has 855 hotel rooms under its wings – will now serve as the company’s hospitality arm, allowing DD to benefit from the booming tourism prospects for the Philippines.
“We believe that the hospitality industry will continue to be one of the fastest growing segments in the country and it is an ideal way for us to increase our leasable portfolio in line with our focus of creating recurring revenue backed by appreciating assets,” DD chair Edgar “Injap” Sia II said.
HOA is a partnership among Sia’s Injap Investments Inc., Chan C. Bros. Holdings Inc. of businessman Carlos Chan’s Oishi Group and Staniel Realty Development Corp.
Under the deal, Injap Investments will fully divest its interest in HOA and consolidate it at the DD level. Chan and Staniel will retain ownership of 15 percent each in HOA.
Injap Investments will be paid in the form of DD shares priced at a 5 percent premium over the 30-day weighted average of the closing price of DD shares before the closing date. This is seen to be a vote of confidence on DD’s prospects.
HOA has established a homegrown condotel brand called Hotel 101 and its subsidiary holds the master franchise for the Philippines of Jinjiang Inn, which targets tourists from mainland China. Jinjiang Inn has a hotel in San Miguel Avenue in Ortigas and another one along Pasay Road in Makati. This company also owns the Injap Tower Hotel in Iloilo City.
Hotel 101 operates a condotel near Mall of Asia. HOA expects to add 608 more rooms to its portfolio with the development of Hotel 101 in Fort Bonifacio.