Property developer DoubleDragon Properties Corp. has debuted into the hotel business with a deal to acquire 70 percent of 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, DD announced the purchase of the stake in Hotel of Asia Inc. (HOA) for P832.17 million, marking its diversification from the shopping mall-based 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 country’s booming tourism prospects.
“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 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 divest its interest in HOA and consolidate it into DD. 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 the homegrown condotel brand 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 along Pasay Road in Makati. It also owns the Injap Tower Hotel in Iloilo City.