HOTEL of Asia Inc., a subsidiary of listed developer DoubleDragon Properties Corp. has doubled its original 2020 expansion goal from 1,000 to 2,000 JinJiang Inn branded hotel rooms in the Philippines, raising the estimated value of its investment to P6.6 billion pesos ($136 million), an outcome of the company’s recent talks in China during the state visit of President Rodrigo Duterte, it said in a disclosure to the Philippine Stock Exchange.
The accelerated expansion aim is in anticipation of the expected surge in Chinese business activities and tourists in the Philippines, the company said.
“We believe that the hospitality industry will continue to be one of the fastest growing segments in the county and it is an ideal way for us to increase our leasable portfolio in line with our focus of creating recurring revenue backed by appreciating assets,” DoubleDragon Chairman Edgar “Injap” Sia II explained.
DoubleDragon’s Hotel of Asia Inc. subsidiary is the exclusive master franchisee of JinJiang Inn in the Philippines.
“JinJiang Inn is one of the largest hotel chains in China, and we are excited to further grow the brand to support the expected influx of the Chinese guests and tourists to the Philippines,” Sia added.
JinJiang Inn currently has two operating hotels in the country, one in Ortigas, and another in Makati.
The company did not say how many properties the 2,000 planned rooms would cover, but said it is looking at expansion in 20 key areas around the country, in particular Quezon City, Manila, Boracay, Cavite, Baguio, Tagaytay, Subic, Roxas City, Clark, Iloilo, Cebu, Bacolod, Dumaguete, Bohol, Palawan, Cagayan De Oro, Davao, and Zamboanga.
DoubleDragon completed a majority acquisition of Hotel of Asia Inc. earlier this year, which the company said at the time will not only allow DoubleDragon to be a major beneficiary of the booming tourism industry but will also allow the company to further optimize the use and value of its string of prime commercial properties in various parts of the Philippines.