LISTED DoubleDragon Corp. (DD) said its hotel arm, Hotel101 Global Pte. Ltd., is expanding into Saudi Arabia with plans to develop up to 10,000 rooms valued at P137.5 billion ($2.5 billion).
Hotel101 signed a joint venture partnership with Saudi-based investment company Horizon Group as the main partner for the expansion, DD said in a statement on Thursday.
The hotel company said it is committed to rolling out a standardized hotel offering averaging 500 rooms per site to meet the growing demand in the Saudi market.
Hotel101 identified an initial five locations for the projects: Medina, Riyadh, Jeddah, Abha, and Alula.
“We see tremendous opportunities in the Kingdom of Saudi Arabia given the high growth in tourism both domestic and international. We believe Saudi Arabia will be one of the most exciting markets for Hotel101 globally,” Hotel101 Chief Executive Officer Hannah Yulo-Luccini said.
“We feel very fortunate to have found the right local partners to rapidly expand the Hotel101 brand in the Kingdom of Saudi Arabia, which is one of the 25 countries we have identified for the initial expansion of Hotel101,” she added.
Hotel101 offers an asset-light condotel business model designed to scale efficiently while maximizing value for both unit owners and guests. The company promotes a global one-room hotel chain that offers identical and standardized hotel rooms.
The partnership combines Hotel101’s HappyRoom concept and condo-hotel funding model with Horizon Group’s market expertise and regional connections. The expansion aligns with Saudi Arabia’s Vision 2030 plan.
“With Hotel101’s rapid-build model and Horizon’s local know-how, we will add 10,000 quality, affordable rooms across the Kingdom — supporting Vision 2030, creating Saudi jobs, and expanding options for pilgrims, tourists, and business travelers alike,” Horizon Group Chief Executive Officer Abdulrahman Sharbatly said.
In 2023, Saudi Arabia surpassed 100 million visitors, recording 27 million international tourists and 79 million domestic tourists.
Hotel101 will list on the Nasdaq Stock Exchange via a merger with special-purpose acquisition company JVSPAC Acquisition Corp. The combined entity will trade under the ticker symbol “HBNB.”
Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said the expansion is a “strategically sound move” that will support Hotel101’s upcoming Nasdaq listing.
“This strengthens its narrative ahead of a planned Nasdaq listing. While the $2.5-billion project value may seem high, the company’s asset-light condotel model means much of the cost will be borne by unit investors rather than DD itself,” she said.
“Execution risks remain, but the potential brand value, revenue streams, and investor appeal this deal unlocks likely outweigh the costs,” she added.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the move supports Hotel101’s listing plans and its status with “more globalized” business operations.
“This will help expand and diversify revenue and income sources in promising markets such as the Middle East with a large wealth and recurring tourism base,” he said.
DD shares rose by 1.39%, or 14 centavos, to P10.20 per share on Thursday. — Revin Mikhael D. Ochave
