Hotel101 targets Nasdaq listing this year, set to be first Philippine brand to list in US
The Singapore-headquartered hotelier plans to expand to 25 countries by 2026, including destinations in Southeast Asia, East Asia, the Middle East and Europe.
Hotel chain Hotel101 Global, a subsidiary of Philippine real estate company DoubleDragon, plans to list on the Nasdaq stock exchange in New York in the second half of this year.
The move will make Hotel101 Global the first Philippine brand to list in the United States.
The subsidiary’s CEO Hannah Yulo-Luccini said the hotelier prides itself as a tech-driven hospitality platform and the listing will help accelerate its global expansion plans.
“Nasdaq, being the home for technology stocks, is the place that we want to be, given our aspirations to grow rapidly,” she told CNA.
“Listing on Nasdaq this year will allow us to access capital markets that will fuel the rapid expansion plans that we have for the world.”
It is merging with Hong Kong-based special purpose acquisition firm JVSPAC Acquisition Corp for the listing.
A joint statement by DoubleDragon, Hotel101 and JVSPAC last month said Hotel101 is expected to have an equity value of over US$2.3 billion following the transaction and will list under ticker "HBNB".
Manila-listed firm DoubleDragon is the Philippines’ fourth largest mall developer, helmed by Jollibee founder Tony Tan Caktiong and real estate businessman Edgar Sia.
GLOBAL EXPANSION PLANS
Hotel101, which is headquartered in Singapore, is eyeing a long-term expansion ambition of 1 million rooms in over 100 countries.
Currently, it operates two hotels in the Philippines, and has three projects under development in Japan’s Niseko, Spain’s Madrid, and Los Angeles in the United States.
In the short term, it plans to expand to 25 countries by 2026, including destinations in Southeast Asia, East Asia, the Middle East and Europe.
A room in Hotel101. (Photo: Handout)
CONDOTEL CONCEPT
Hotel101 builds and operates so-called condotels – hybrid properties made up of individually-owned condominium units that operate like hotels – with standardised 21 sq m rooms.
Each building offers amenities typical of both condominiums and hotels, such as swimming pools, function rooms, gyms and in-room kitchenettes.
Ms Yulo-Luccini said the model is in short supply in the industry and Hotel101 aims to lean into that demand.
“Standardisation exists in almost every value segment in the world. For example, the budget airline industry essentially sells one product – the economy seat,” she said.
“What is the one standard hotel industry (product) in the value segment? …That room doesn't exist.
“We see ourselves as a disruptor in an industry that is ripe for disruption. And the opportunity that we see globally today is that lack of standardisation in the three-star hotel segment,” she added.
Hotel101 CEO Hannah Yulo-Luccini speaks to CNA’s Sarah Al-Khaldi during an interview.
DOES THE MODEL WORK?
Hotel101’s business model is asset-light and generates revenue from two sources – first from room sales and then from hotel guests, said Ms Yulo-Luccini.
“We make money twice – first from the selling of the units, which recoups the capital during the construction stage and allows us to redeploy much faster than most hotel developers,” she said. “Secondly, we make money from the operations of the hotel,” she said.
She said the brand’s projects are seeing high demand, particularly in Niseko. An extension of the high-speed Shinkansen bullet train that is in the works to connect the Hokkaido town has driven property prices up in the past few years.
Ms Yulo-Luccini added that the condotel will give budget-conscious travellers more options in the skiing resort town.
“Niseko has traditionally been a luxury market. So, Hotel101 is very interesting for global investors. (Soon,) tourists will be able to get value-for-money when they go to Niseko,” she said. “People are really looking at Niseko to become more of a capital appreciation play.”
An artist's impression of Hotel101 in Niseko, Japan. (Photo: Handout)
Its two hotels in the Philippines saw their highest occupancy rate in 2021 – right in the storm of the COVID-19 pandemic – when it pivoted to corporate accounts to provide rooms to quarantine local guests, tourists and business travellers.
Ms Yulo-Luccini said that the brand’s success during the pandemic years led to the decision to expand overseas and list in New York.
“The Philippines had several lockdowns, but we never closed the hotels, and our unit owners continued to get sufficient yields. They were happy compared to people who had condominiums, for example, that remained vacant during the pandemic.
“In the midst of a global pandemic, we continued to operate and be profitable… we knew we had something special. So, that really cemented our conviction to go global.”
