LISTED property developer DoubleDragon Properties Corporation has formally entered the hospitality sector after completing the acquisition of a majority stake in Hotel of Asia Inc (HOA), which will serve as its hospitality arm in the country.
In a disclosure to the Philippine Stock Exchange on Thursday, DoubleDragon said it has completed the purchase of 70 percent of HOA for P832.17 million.
HOA owns, operates, and develops hotel projects. It was established in 2011 as a joint venture between Injap Investments Inc.(III), a holding company owned by DoubleDragon chairman Edgar “Injap” Sia II; Chan C. Bros. Holdings, Inc. (CCBHI) of the Oishi Group; and Staniel Realty Development Corp. (SRDC).
DoubleDragon announced in August that it signed an agreement with HOA to acquire a majority stake of the hotel operator and developer. The transaction will be paid in DoubleDragon common shares.
“As previously disclosed, Injap Investments Inc. shall be paid in DD common shares priced at a 5 percent premium over the 30-day weighted average of the closing prices of DD common shares preceding the closing date of the transaction which is at P61.34 per share,” the disclosure said.
DoubleDragon earlier said it decided to buy HOA because of the optimistic outlook of the country’s tourism industry.
“The stake in HOA will now allow DoubleDragon to benefit from the booming tourism prospects for the Philippines in the years to come as well as fully optimize thee use and value of its string of prime properties in various strategic areas of the country,” DoubleDragon has said.
At present, HOA has 866 hotel rooms under its Hotel 101 brand and its franchise of Asian hotel brand JinJiang Inn.
The hotel group is looking to add another 608 rooms to its portfolio as it plans to launch Hotel 101-Fort, to be located adjacent to C5, practically across SM Aura and Market Market.
Upon closing of the transaction, CCBHI and SRDC will retain their 15 percent stake in the hotel company.