DoubleDragon's Madrid hotel rakes in $3.28M

DoubleDragon Corp.'s overseas expansion is gaining momentum as its Hotel101 property in Madrid, Spain, generated a record $3.28 million, or about P209 million, in October revenue, supported by near-full occupancy and strong international demand.

In a disclosure on Tuesday, the company said its 680-room Hotel101-Madrid recorded an average occupancy rate of 97.41 percent, equivalent to about 660 occupied rooms daily.

"This record performance reflects the continued momentum and exceptionally strong demand for Hotel101-Madrid, the first Hotel101-branded property to operate outside the Philippines, which opened in March," the company said.

DoubleDragon's hotel business model generates income from both selling standardized hotel units and recurring hotel operations.

Unit owners collectively receive 30 percent of monthly gross room revenues, net of applicable taxes and statutory charges.

Since opening in March, Hotel101-Madrid has welcomed more than 95,500 guests from over 100 nationalities, with European travelers accounting for 63.3 percent of arrivals.

The hotel's performance comes as overseas operations account for a growing share of DoubleDragon's revenues.

In the third quarter of the year, foreign currency revenues contributed 59.03 percent of total core revenues, marking the first time they accounted for the majority of the company's quarterly core revenues.

For the first nine months, DoubleDragon's core net income more than tripled to P3.91 billion, up 253.59 percent year-on-year, while consolidated revenues climbed 98.76 percent to P20.78 billion.

Third-quarter net income also jumped more than sixfold to P1.13 billion from P183.67 million a year earlier.

DoubleDragon is banking on Hotel101's international expansion to strengthen its recurring revenue base, with a long-term target of developing one million standardized hotel rooms across 100 countries.

Its next overseas property in Niseko, Hokkaido, Japan, is scheduled to open in December.

The company also plans to expand through joint ventures and future licensing agreements as it works toward its P500-billion total core revenue target ahead of 2035.