PROPERTY developer DoubleDragon Properties Corp. has completed a deal to acquire a 70-percent stake in hotel developer and operator Hotel of Asia Inc. (HOA) for P832.17 million, marking its entry into the hospitality business.
HOA has 855 hotel rooms under its wings under homegrown condotel brand Hotel 101 and the local franchise of Jinjiang Inn, one of the largest hotel brands in Asia.
DoubleDragon chair Edgar Sia II believes that the hospitality industry will continue to be one of the fastest growing segments in the county and thus would be an ideal way for DoubleDragon to increase leasable portfolio in line with its focus of creating recurring revenue backed by appreciating assets.
HOA was initially created in 2011 as a joint venture between Sia’s Injap Investments Inc., Chan C. Bros. Holdings, Inc. (CCBHI) of the Oishi Group and Staniel Realty Development Corp. (SRDC).
This hotel company will soon add another 608 rooms to its portfolio with the development of Hotel 101-Fort located adjacent to C5 nearly across SM Aura and Market Market.
In consideration for its stake in the hotel business, III has been paid with DoubleDragon common shares priced at a 5 percent premium over the 30-day weighted average of the closing price of common shares preceding closing date of the transaction, which is at P61.34 per share, the company said in a disclosure to the Philippine Stock Exchange on Thursday.
With the closing of the transaction, Injap Investments has fully divested its interests in HOA and consolidated it at the DoubleDragon level while CCBHI and SRDC will retain a direct stake of 15 percent each in HOA.