DoubleDragon hotel unit expanding
BEIJING—Property developer DoubleDragon Properties Corp. has committed to spend $136 million, or about P6.6 billion, to double the room capacity of its hotels under the Chinese brand of JinJiang Inn.
Through hospitality subsidiary Hotel of Asia Inc. (HOA), DoubleDragon has unveiled plans to fast-track expansion and build a 2,000-room capacity by 2020 from the current capacity of 1,000.
The expansion is seen making JinJiang Inn one of the leading brands in Asia by 2020.
The company’s principal investors Edgar Sia II and Tony Tan Caktiong form part of the business delegation that accompanied President Duterte in his four-day state visit to China that ended on Friday. The two were among the few business delegates—out of around 450 who flew in here—who were invited to the state banquet held on Thursday night.
In a chance interview, Sia said HOA would benefit from the improved Philippine and China relations.
China and the Philippines have rekindled friendship after a five-year diplomatic chill, spiced up by an agreement to return to the bilateral discussions to address maritime dispute.
Chinese President Xi Jinping had agreed to lift travel advisories issued a few years ago to Chinese citizens traveling to the Philippines, a move seen to encourage more Chinese citizens to travel to the Philippines.
With this expansion program, HOA is betting on a surge in Chinese business activities and tourists in the Philippines.
“We believe that the hospitality industry will continue to be one of the fastest growing segments in the county and it is an ideal way for us to increase our leasable portfolio in line with our focus to create recurring revenue backed by appreciating assets,” Sia said.
HOA, through a subsidiary, is the exclusive master franchisee of JinJiang Inn in the Philippines. HOA is joint venture between DoubleDragon and Steneil Devt. Corp and Chan C Bros Holdings Corp. of the Oishi group.
“JinJiang Inn is one of the largest hotel chains in China, and we are excited to further grow the brand to support the expected influx of Chinese guests and tourists to the Philippines,” Sia said.
The Chinese hospitality brand currently has two operating hotels in the country, one in the Ortigas district, and another one in the Makati district. The company plans to expand in 20 key areas such as Quezon City, Manila, Boracay, Cavite, Baguio City, Tagaytay City, Subic, Roxas City, Clark, Iloilo City, Cebu City, Bacolod City, Dumaguete City, Bohol, Palawan, Cagayan De Oro City, Davao City and Zamboanga City.
