DOUBLEDRAGON Corp. plans to establish a hospitality real estate investment trust (REIT) in Singapore as part of efforts to accelerate the global expansion of its Hotel101 brand and create a new source of recurring revenues.
In a disclosure on Friday, the listed property developer said its board had approved the creation of Singapore special purpose vehicle (SPV), DD Hotel101 Worldwide One, which will sponsor a S$300-million REIT.
The proposed Singapore REIT is expected to become the fourth pure hospitality REIT to be listed on the Singapore Exchange and will initially hold a diversified portfolio of Hotel101 uniform units carved out from selected projects in different countries.
The special purpose vehicle will serve as a permanent capital recycling mechanism to complement Hotel101’s per-unit sales model while generating recurring income, DoubleDragon said.
The initial asset size of S$300 million will qualify the REIT for exemption from Singapore’s requirement of an operating history of three years. Once listed, additional Hotel101 units from projects worldwide could be infused into the REIT to expand its recurring revenue-generating asset base.
About 20 to 30 percent of selected Hotel101 developments globally are intended to be allocated to listed Hotel101 REITs in major stock exchanges over time, DoubleDragon said, noting that this initiative would strengthen Hotel101 Global’s asset-light, proptech licensing platform as it prepares for the next phase of international expansion.
The company said the strategy was also aligned with its long-term target of developing one million standardized hotel rooms across more than 100 countries.
It said the planned Singapore REIT was intended to make the Hotel101 platform more attractive to overseas developers as the company shifts toward a licensing-led growth model.
Hotel101 currently operates the 518-room Hotel101-Manila and the 606-room Hotel101-Fort in the Philippines, while Hotel101-Madrid, its first overseas property, opened in Spain in March this year.
The company said the Madrid hotel has delivered a strong operating performance, including a record single-day revenue of more than €100,000 at full occupancy.
Hotel101 is also scheduled to open the 482-room Hotel101-Niseko in Hokkaido, Japan in December.
Together with projects in Davao and Cebu, DoubleDragon expects to bring an additional 2,229 hotel rooms into operation this year, the highest annual room rollout in the company’s history.
It added that the continuing expansion of Hotel101 was expected to support its broader goal of increasing recurring revenues from its hospitality, office, industrial and retail property businesses while advancing its 2035 vision that aims to turn DoubleDragon into a debt-free global enterprise.
DoubleDragon shares surged P0.08, or 0.67 percent, to close at P11.94 each on Friday.
