SEC OKs CLI Hotel rental deals

Listed property developer Cebu Landmasters, Inc. (CLI) has secured regulatory clearance to move forward with rental pool offerings for its hotel projects.

Citing a 16 December meeting, the Securities and Exchange Commission (SEC) said Thursday that it approved the registration of 443 rental pool agreements linked to CLI.

The SEC En Banc rendered effective the registration statements of CLI Premier Hotel International, Inc. covering 180 agreements, and YHES Premier Hotel, Inc. covering 263 agreements, subject to compliance with remaining requirements.

The approved rental pool agreements for CLI Premier Hotel cover 132 studio executive units, 47 one-bedroom units, and one two-bedroom service residential unit at Citadines Cebu City, which has been operating since September 2019.

Fully paid unit owners are automatically eligible to join the program. Studio and one-bedroom units are priced between P4.9 million and P6.8 million.

Under the program, unit owners receive 40 percent of net room revenue, paid quarterly, and 10 complimentary nights with breakfast each year, subject to availability.

For YHES Premier Hotel, the rental pool agreements cover 180 studio units, 73 one-bedroom units, and 10 two-bedroom service residential units at Citadines Paragon Davao, which is set to open in the second half of 2026. Fully paid unit owners are automatically qualified to participate.

The serviced-residence condotel operates under the Citadines brand of The Ascott Limited.

Participants will also receive 40 percent of net room revenue, distributed quarterly, and 15 complimentary room nights annually, subject to availability.

The rental pool agreements were registered under the SEC’s streamlined process for Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT), pursuant to SEC Memorandum Circular No. 12, Series of 2024.

Rental pool agreements are investment contracts where buyers purchase units in real estate projects—such as condominiums, hotels, resorts, or dormitories—on the condition that these units are placed in a rental pool managed by the developer or a third-party operator.

Buyers earn returns based on a share of the income generated from renting out the units.

CLI Premier Hotel International is a wholly owned subsidiary of CLI, while YHES Premier Hotel is a subsidiary of Yuson Huang Excellence Soberano, Inc., which is 50 percent owned by CLI.