425: Hotel101 Global Set to List on NASDAQ in Q4, Eyes Early Sell-Out in Spain and Japan

Hotel101 Global, a subsidiary of DoubleDragon Corp., is progressing towards its US listing via a merger with JVSPAC Acquisition Corp. in Q4, with expectations of early sell-outs for its Madrid and Niseko projects.

Summary

• Hotel101 Global, a subsidiary of DoubleDragon Corp., is planning to list on the US NASDAQ in the fourth quarter via a merger with JVSPAC Acquisition Corp.
• The combined entity will trade under the ticker symbol HBNB, making Hotel101 the first Philippine company to list in the US.
• The company expects to complete and fully sell out its units in Madrid, Spain, and Niseko, Hokkaido, Japan, ahead of schedule.
• The 680-room Hotel101-Madrid is slated for completion by the end of 2025, while the 482-room Hotel101-Niseko is set for completion by 2026.
• Hotel101 expects to generate P71.2 billion from the Hotel101-Niseko project and P8.8 billion from the Hotel101-Madrid property.
• The company has reached a milestone with the issuance of Spanish Investor Visas (Golden Visas) to the first batch of Hotel101-Madrid unit owners.
• The purchase of Hotel101 units can be used by foreign buyers to comply with the 500,000-euro Spanish real estate investment requirement for the Golden Visa.
• Hotel101 Global and its affiliates will have an equity value of $2.3 billion following the completion of the merger transaction.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with the planned US listing, expected early sell-outs, and the issuance of Golden Visas. The management's comments are also optimistic, contributing to a positive sentiment.

Positives

• Hotel101 Global's planned US listing is progressing as expected.
• The company anticipates early sell-outs for its Madrid and Niseko projects, indicating strong demand.
• The issuance of Golden Visas to Hotel101-Madrid unit owners is a positive milestone.
• The asset-light business model allows the company to generate revenue and income twice.
• The export of Hotel101 is expected to eventually become one of the major US dollar inflow generator to the country's economy.

Negatives

• On Thursday, DD shares fell by 1.48% or 14 centavos to P9.35 per share.

Risks

• The Golden Visa applications are subject to evaluation and approval by the Spanish government, which is at its discretion.
• The completion and sell-out of the projects are subject to market conditions and other unforeseen circumstances.

Future Outlook

Hotel101 Global anticipates completing its US listing in Q4 2024 and expects early sell-outs for its Madrid and Niseko projects. The company aims to expand its Hotel101 concept globally, starting with Japan, Spain, and the US.

Management Comments

• 'We have seen incredible traction in our Hotel101 projects globally,' said Hotel101 Global CEO Hannah Yulo-Luccini.
• DoubleDragon chairman Edgar Injap Sia II said it would be optional for the Hotel101 unit buyers if they wanted to apply for a Golden Visa with their purchase of the Hotel101 units.

Industry Context

This announcement reflects a growing trend of companies, particularly those in the hospitality and real estate sectors, seeking to expand their global presence through strategic listings and international projects. The use of the Golden Visa program to attract investors is also a notable strategy.

Comparison to Industry Standards

• Hotel101's asset-light model is similar to that of companies like Airbnb, which focus on generating revenue from existing properties rather than owning them directly.
• The use of Golden Visas to attract investment is a common practice in countries like Spain and Portugal, aiming to boost their economies through foreign investment in real estate.
• Other hotel chains such as Marriott and Hilton have also expanded globally through franchising and management agreements, similar to Hotel101's approach.

Stakeholder Impact

• Shareholders of DoubleDragon Corp. will be impacted by the US listing of Hotel101 Global.
• Potential unit buyers in Hotel101-Madrid and Hotel101-Niseko will be impacted by the project's progress and the availability of Golden Visas.
• The Spanish economy will benefit from the investment and job creation associated with the Hotel101-Madrid project.

Next Steps

• Complete the merger with JVSPAC Acquisition Corp.
• List on the NASDAQ under the ticker symbol HBNB.
• Continue the development and sales of Hotel101-Madrid and Hotel101-Niseko.
• Expand the Hotel101 concept to other countries, including the US.

Key Dates