SEC clears Global One rental pool program covering 6,340 condo-hotel units

THE Securities and Exchange Commission (SEC) has approved the registration statement of Global One Hotel Group, Inc.’s rental pool program under the Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT) framework.

In a statement on Tuesday, the regulator said the SEC En Banc, during its June 11 meeting, approved Global One Hotel Group’s registration statement covering 6,340 certificates of participation across 12 condominium-hotel projects, subject to compliance with remaining requirements.

Of the units covered by the rental pool program, 4,277 have already been sold, while 2,063 remain unsold.

“The public may invest in the program without paying a joining fee, and there is no specified offer price to participate,” the SEC said.

The SEC said six projects located in Parañaque City, Pasay City, and Cebu are already operational, while six others in Iloilo, Negros Occidental, Palawan, Pampanga, and Pasig City are in various stages of construction.

According to information posted on Global One Hotel Group’s website, the company serves as lessee for 12 condominium-hotel projects, including operational properties such as Belmont Hotel Manila, Savoy Hotel Manila, Savoy Hotel Mactan, Kingsford Hotel Manila, Grand Westside Hotel, and Belmont Hotel Mactan.

Information on the company’s website also include Belmont Hotel Iloilo, Kingsford Hotel Bacolod, Savoy Hotel Palawan, Savoy Hotel Capital Town in Pampanga, Paragua Sands Hotel in Palawan, and The ArcoVia Hotel in Pasig City.

Global One Hotel Group is a wholly owned subsidiary of Oceanic Realty Group Int’l, Inc., which is ultimately controlled by listed conglomerate Alliance Global Group, Inc.

Under the program, condominium units will be leased to Global One Hotel, which will manage the units either directly, through a subsidiary or affiliate, or through a third-party operator, according to the SEC.

The units will then be made available to paying guests as hotel accommodations.

The rental pool agreements are valid for 15 years from the date of admission of a hotel’s first paying guests and will be automatically renewed for another 15 years unless otherwise provided by Global One Hotel, the SEC said.

Implemented through SEC Memorandum Circular No. 12, Series of 2024, SEC RENT simplifies the registration process for securities involving rental pool deals and similar real estate investment arrangements.

Rental pool agreements are investment contracts in which developers sell or offer units in real estate projects, such as condominiums, hotels, or resorts, to the public.

The units are then placed in a rental pool managed by the developer or a third-party operator, with unit owners entitled to a share of income generated from renting out the properties to third parties. — A.G.C. Magno