DOUBLEDRAGON Properties Corp. will launch pre-selling activities in three new Hotel 101 projects this year, namely Hotel 101-Cebu, Hotel 101 Resort-Boracay and Hotel 101-Libis.
These three new hotels will bring a total of 2,251 new rooms to the company’s portfolio.
A total of P11.03 billion in sales revenues is expected to be generated in these new projects, the firm told the local bourse Wednesday, April 21, 2021.
The Hotel 101 model being a three-star affordable hotel maintained high occupancy as it provided accommodation to employees of business process management companies even at the height of the pandemic.
In fact, the 518-room Hotel 101-Manila maintained a strong occupancy at 80.11 percent in 2020. One hundred percent of the inventory of Hotel 101-Fort was also fully sold out during the pandemic.
Hotel 101-Cebu is located along the Mactan-Cebu International Airport Road near the Mactan Marina Mall.
The listed firm through its subsidiary Federated Realty of the U-Bix Group signed a joint venture agreement in 2019 to build Hotel 101-Cebu.
Hotel 101’s “Happy Rooms” have been designed from the very beginning to have the amenities of a studio unit, equipped with kitchenettes in each room, which makes it suitable for long staying guests. These features and more came in very useful during the pandemic.
The Hotel 101 concept allows DoubleDragon to generate revenue and income twice, first from the pre-selling of the condotel units, then secondly after the project is completed it starts to generate long-term recurring revenue from hotel operations.
The company added that its room rates are dynamic just like purchasing an airline ticket where prices go up and down multiple times every day depending on the supply and demand for the specific booking period.
“As far as we are aware, Hotel 101 is the only hotel concept of its kind in the world. The patent documents for Hotel 101’s unique and pioneering concept has already been filed,” said DoubleDragon chairman Edgar “Injap” Sia.
“The Hotel 101 model has proven to be truly resilient. Even in these circumstances it was able to deliver as much as 6.72 percent gross annual yield to its original Hotel 101–Manila unit owners, which is much higher than most corporate bond yields last year,” said DoubleDragon chief investment officer Hannah Yulo-Luccini.
“The completion of these new Hotel 101 projects will be perfectly timed with the full recovery and anticipated rebound in the tourism industry in the Philippines. We believe in a couple of years, all this pent-up demand for tourism will cause an unseen surge in demand for hotel rooms across the country,” added Yulo-Luccini.
Hotel of Asia is one of the major subsidiaries of DoubleDragon, in addition to DDMP REIT, CityMall Commercial Centers and CentralHub Industrial Centers. (KOC)