Double Dragon’s ambitious foray into Cambodia for its Hotel101 condotel business appears to be winning investor confidence.
The company said its P10.9 billion bond sale drew strong demand, already “over 80 percent of the total base plus maximum oversubscription offer.”
From the base offer alone, subscriptions were double the P3.5 billion initially offered.
DoubleDragon is selling an additional P7.4 billion under its oversubscription option. The bonds have tenors of 3.5 years and 5.5 years.
This issuance marks the third and final tranche of the company’s three-year P30 billion retail bond program approved by the Securities and Exchange Commission.
Philippine Rating Services Corp. has assigned the bonds its highest PRS Aaa rating with a stable outlook.
Last month, DoubleDragon signed a definitive agreement to develop two Hotel101 projects in Cambodia — a 700-room hotel in Phnom Penh and a 680-key property in Sihanoukville.
Cambodia is the sixth country to host the Hotel101 brand, after Japan, Spain, the United States, Saudi Arabia, and the Philippines. The new projects are expected to generate $109.55 million in sales.
A condotel is a condominium project operated as a hotel. Units are individually owned but managed under the Hotel101 system.
The Phnom Penh hotel will be a 30-storey tower on a prime 2,033-square-meter commercial site in Tonle Bassac, a riverfront hub near the upscale BKK District.
Meanwhile, Hotel101-Sihanoukville will rise on a 4,623-square-meter site beside the planned international convention and exhibition center within the Bay of Lights coastal development.
