Hotel101 projects $471-Mn earnings from global expansion

Hotel101 Global Pte. Ltd., led by tycoon Edgar “Injap” Sia II, is poised to generate an estimated $471 million in earnings from its expansion projects in Japan, Spain, and the United States. The company recently announced a significant milestone with the turnover of the second batch of Spanish Golden Visas to buyers of its units in Hotel101 Madrid, further solidifying its international footprint.

The successful handover of these visas has spurred additional sales for Hotel101’s inaugural international venture, making it the first Hotel101 to operate outside the Philippines. The company is optimistic about the potential of its projects in Madrid, Hokkaido, and Los Angeles, all of which are expected to contribute substantially to its parent company, DoubleDragon Corp.

In a bid to attract foreign investors, Hotel101 Madrid offers Golden Visas, which grant residence permits to non-Europeans who invest significantly in the country. Foreign buyers can qualify for these visas by purchasing real estate worth at least 500,000 euros, allowing them to obtain a Golden Visa with the purchase of just three units in the hotel.

Hotel101 Global's swift processing of the first batch of Golden Visas in just over six months and the second batch in under 60 days reflects the high demand for its offerings. With units in Madrid and Hokkaido projected to sell out ahead of schedule, the company is making strides toward its ambitious goal of operating one million rooms by 2050, including 50,000 in the Philippines.

Employing an asset-light business model, Hotel101 averages about 500 rooms per site, allowing for rapid revenue generation through pre-sales. This strategy has enabled the company to secure earnings from unit sales before the completion of construction.

In addition to its ambitious growth plans, Hotel101 Global is preparing for an initial public offering (IPO) in the United States, with intentions to finalize the listing by the end of the year. The company aims to solidify its position as the largest hotel operator in the Philippines and among the top five globally, making its expansion strategy a key component of its long-term vision.