DOUBLEDRAGON Corporation approved on Friday, July 31, the creation of a Singapore special purpose vehicle (SPV) – DD Hotel101 Worldwide One.
Structured as a S$300 million (SGD) Real Estate Investment Trust (REIT) sponsor, the entity is slated to become the fourth pure-hospitality listed REIT on the Singapore Exchange (SGX), alongside CDL Hospitality Trust, Far East Hospitality Trust, and CapitaLand Ascott Trust.
DD Hotel101 Worldwide One will hold a diversified basket of standardized Hotel101 units carved out from select global projects. The platform is designed to establish a permanent mechanism for capital recycling to complement the robust individual per-unit sales of Hotel101 projects globally. The entity may also incorporate sub-REIT companies depending on the most efficient structure in various jurisdictions.
This strategic initiative will create a deep and entirely new revenue stream while serving as a major attraction for established international developers as Hotel101 Global transitions into Phase 3 of its expansion via a pure proptech asset-light licensing platform, according to DoubleDragon.
The initial asset size of S$300 million SGD will allow the company to qualify for SGX exemptions regarding the three-year operational history requirement. Once listed, additional select Hotel101 units from various Hotel101 projects in different parts of the world can be continuously infused to the listed REIT company to keep growing its recurring revenue asset base of exclusively diversified Hotel101 uniform units.
Moving forward, DoubleDragon plans to allocate 20 to 30 percent of selected Hotel101 projects globally for infusion into listed Hotel101 REITs across major international stock exchanges.
This step will significantly enhance the attractiveness of the H101 PropTech Platform as it prepares to enter the third phase of hyper growth via licensing. It forms part of the necessary sequence of actions required to support Hotel101’s goal of developing one million standardized rooms. Over time, the company intends to expand the H101 REIT platform by listing across various major stock exchanges globally.
This strategy aligns with Hotel101 Global’s disciplined, asset-light, proptech hospitality model and supports the company’s ultimate vision of developing one million standardized rooms across more than 100 countries, with the goal of becoming the world’s largest single-brand hotel chain.
DoubleDragon Group continues to tap various capital initiatives to further strengthen its balance sheet and boost its overall progress towards its 2035 vision./PN
