Hotel101 Takes a Global Leap: Philippine Real Estate Firm's NASDAQ Debut
Philippine real estate giant DoubleDragon announced on April 8, 2024, that its subsidiary, Hotel101 Global, is set to make history by becoming the first Philippine company to be listed on the NASDAQ in the United States. This milestone comes through a merger with the special purpose acquisition company, or SPAC, JVSPAC Acquisition Corp., which is expected to close in the second half of 2024 pending shareholder approval and regulatory clearances.
With an expected equity value exceeding US$2.3 billion, the merger signals a significant step forward for Hotel101, which will be listed under the ticker symbol “HBNB.”
JVSPAC’s current market value is US$75.4 million.
CEO Hannah Yulo-Luccini expressed optimism about the move, citing access to public capital markets as a catalyst for accelerating their global expansion plans.
Hotel101, the hotel arm of DoubleDragon, distinguishes itself with a unique business model, offering standardized 21-square-meter rooms sold individually to investors. Headquartered in Singapore, it currently operates two hotels in the Philippines, with three more in development across Japan, Spain, and the U.S. The company aims to extend its reach to 25 countries, including major markets like China and Saudi Arabia, by 2026.
Founder Edgar “Injap” Sia II envisions Hotel101 as a global player with a footprint in over 100 countries and a staggering one million rooms. Sia emphasized that DoubleDragon would retain a significant stake in the company post-listing.
The merger not only marks a significant achievement for Hotel101 but also underscores the growing trend of Southeast Asian firms seeking listings in the U.S. amidst tensions between China and the U.S. Notable examples include Vietnamese EV maker VinFast and Malaysian budget airline AirAsia’s brand management unit.
With less than 5% of Hotel101 floated initially, the company plans to attract institutional and private investors through further public offerings, as revealed by Yulo-Luccini. Led by Albert Wong, JVSPAC targets lifestyle and tech businesses, reflecting the ongoing trend of SPACs shaping the landscape of global investments.
Insight: In September 2021, analysts at Goldman Sachs pointed out that out of the 172 SPACs that had completed a merger since the beginning of 2020, the typical SPAC had performed better than the 3,000 largest publicly traded U.S. companies from its initial public offering (IPO) to the merger date.