DoubleDragon Corp., a joint venture of businessmen Edgar Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong, plans to build a portfolio of 200,000 hotel rooms by 2035.
DoubleDragon said in a disclosure to the stock exchange Wednesday that planned hotel projects would be developed through direct investments, joint ventures with local companies in other countries and brand and concept licensing arrangements.
DoubleDragon said Singapore unit Hotel101 Global Pte. Ltd. would raise $125 million from offshore venture capital markets to achieve the goal.
Hotel101 Global will hold all international investments of Hotel101 outside the Philippines.
The Singapore unit is also intended to be the future overseas IPO vehicle for the group’s international expansion of Hotel101.
“This capital exercise would also enable Hotel101 Global to achieve its aspiration of eventually becoming a listed company in a stock exchange abroad as Hotel101 Global trails its way towards its vision to eventually become one of the Top 10 largest hotel brands in the world with a portfolio of Hotel101 Happy Rooms exceeding 200,000 by 2035 to be developed through direct investments, joint ventures with local companies in other countries, and through brand and concept licensing arrangements,” DoubleDragon said.
The first tranche of capital raising will be launched in January 2023.
The company said the Series A offshore institutional investors would have the opportunity to be one of the first group of venture capital investors that could take early equity positions in Hotel101 Global.
DoubleDragon is developing its first Hotel101 in Niseko, Hokkaido in Japan.
“Hotel101 rooms globally are generally uniform in size and cater to the mid-end market, enabling a highly efficient booking process allowing guests to know exactly what to expect in a Hotel 101 wherever it may be located,” DoubleDragon said.
The company said it filed the concept patent of Hotel 101’s pioneering condotel concept and secured the Hotel 101 trademark and country-specific domains.
“Hotel 101 adopts dynamic pricing on its room rates similar to airline tickets where its room price moves up and down depending on the real-time supply and demand on the chosen date of booking,” the company said.