DoubleDragon Corporation’s subsidiary Hotel101 Global Pte Ltd. officially reserved its ticker symbol “HBNB” with New York-based Nasdaq Stock Exchange as a step toward the firm’s goal of making it the most technology-centric and highly-scalable hotel for the mid-market.
In a disclosure to the Philippine Stock Exchange on Thursday, DoubleDragon said it is boosting its equity capital base through a special purpose acquisition company or SPAC listing.
This raises money through an initial public offering with the purpose of buying another company.
DoubleDragon said app-based Hotel101 aims to build 1,000,000 uniform rooms in 101 countries before 2050.
95% from overseas ops
Over 95 percent of its revenues will come from overseas operations, DoubleDragon said.
Hotel101 eyes service areas in the US, Japan and Spain.
To complete the SPAC, DoubleDragon, along with its SPAC sponsor, will sign next month a Definitive SPAC Business Combination Merger Agreement before the official filing of its prospectus to be approved by the US regulators.
“The opportunity that we see globally in the hospitality space is that of standardization because we believe it brings unbeatable efficiency, especially for the mid-end segment. Take for example the budget airline industry — essentially all budget airlines sell one product across the whole industry and that product is the economy seat,” DoubleDragon chairman Edgar Injap Sia II said.
DoubleDragon said it is ensuring its success for Hotel101 through several features.
First, it said customers can easily select and book a room through the Hotel101 app as all rooms look the same, with similar furniture, light fixtures and 21-square meter floor area.
“The Hotel101 App’s new version coming up soon will have self-check in capability, and since it has only 1 type of inventory in the app, it is very easy to use as there are no other types of rooms to choose from. The efficiency that results from these are expected to bring unmatched value and efficiency to Hotel101 customers,” DoubleDragon said.
Accordingly, the firm said customers will have predictable and the same accommodation experience.
Second, prices are rationalized based on the real-time supply and demand on the chosen date of booking.
Third, individuals can become property owners to gain passive income. “The Hotel101 business model is backed with titled strata or condominium title that can be enrolled to the Hotel101 App as its core, as far as we know, does not exist yet anywhere in the world,” DoubleDragon said.
“The Hotel101 concept is positioned as a better alternative to people who buy titled apartment condo real estate units with the intention to lease out or enroll the asset in Short Term Rental App platforms for passive income with the intention to preserve the long-term asset value of the titled apartment unit that they could eventually pass on as inheritance to their children or grandchildren,” it added.
With this business concept, DoubleDragon said room rates are reduced by 30 percent compared to other mid-market hotel chains in any country.