Hotel101, a hotel operator with a unique "condotel" model, has announced a definitive merger agreement with the JVSPAC Acquisition Corporation (JVSA) that will take it public on the Nasdaq stock exchange under the ticker symbol HBNB.
Hotel101, registered in Singapore, is the global hotel expansion arm of the Philippine-based DoubleDragon Corporation.
The deal will close in the second half of 2024 and values Hotel101 at more than US$2.3bn.
Hotel101 positions itself as a global "one room" hotel chain, offering identical, standardised rooms across the world. This approach, according to its management, creates efficiency, simplicity and value for both guests and developers.
Hotel101 has set out the characteristics it considers set it apart:
- Its asset-light model: Hotel101 doesn't own the properties it operates. Instead, it generates revenue by pre-selling individual condominium units during construction and then managing the hotel operations for a recurring fee.
- Its standardised rooms: unlike traditional hotels with varying room types, Hotel101 offers just one room design globally. This consistency allows for faster construction, easier maintenance and a predictable experience for guests.
- Being technology-driven: Hotel101's app uses dynamic pricing for rooms and facilitates self-check-in, streamlining the guest experience.
- Superior amenities: by building properties at a larger scale, Hotel101 offers amenities such as in-room kitchenettes, pools and gyms, exceeding what is typically found in the value segment.
This innovative approach has ambitious targets: Hotel101 aims to become a million-room chain operating in 100 countries.
Its initial focus will be on 25 key markets. These include the Philippines, Japan, Spain, the US and major European economies.
Hannah Yulo-Luccini, CEO of Hotel101, said in a statement: “Hotel101's asset-light business model allows us to generate revenues twice: first from the pre-selling of strata-titled individual hotel units during the construction phase, and second, from the long-term recurring revenue derived from day-to-day hotel operations following completion of the units.
"We believe that a NASDAQ listing will provide Hotel101 with access to public capital markets and help accelerate our global expansion plans.”
“We sought out a partner that aligns with our vision and are confident that this merger will position us for long-term success. We are pleased to work with Hotel101 and believe its unique business model and the track record of its founders will be a disruptive force in the hospitality industry,” said Albert Wong, chairman of the JVSPAC Acquisition Corporation.
Hotel101 has already begun its international expansion with projects underway in Spain and Japan and a planned development in the US.
