Dotz opens six-hotel Israeli rollout for ChillerAI

Six-Hotel ChillerAI Agreement Sets Indicative Revenue Path

Dotz Nano Limited (ASX:DTZ) has signed a five-year agreement with Africa Israel Hotels, operator of the VERT hotel brand, to supply and operate its ChillerAI energy-management system across six Israeli properties. The indicative fee schedule totals about NIS 32,176 a month, equivalent to approximately A$14,500, or roughly A$174,000 on an annualised basis if all listed sites operate at those levels.

That figure is a reference point, not contracted revenue. Dotz will be paid a monthly fee based on 40% of the actual electricity savings achieved by each hotel’s air-conditioning system, with savings reviewed and approved quarterly and subject to later true-ups. There is no installation fee, so the arrangement gives Dotz a recurring-revenue opportunity while making its income directly dependent on measured performance.

VERT Jerusalem Leads the Israeli Rollout

Deployment begins at VERT Jerusalem, which Dotz says was previously installed under a 2023 proposal and will now be migrated to the Dotz Energy cloud platform and recommissioned. The agreement lists VERT Eilat, VERT Lagoon Netanya, Crowne Plaza Tel Aviv City Center, POLI Urban Tel Aviv and VERT Dead Sea in an agreed priority order, representing approximately 3,705 tons of installed cooling capacity in total.

However, the five additional properties are not yet revenue-producing deployments. Their rollout remains subject to site readiness and implementation planning, while commencement of the agreement is conditional on AFI Hotels approving Dotz’s monitoring and control dashboard. Dotz is required to install the system within 60 business days of signing, followed by an approximately 30-day baseline measurement period before monthly fees begin.

Performance Model Carries Both Upside and Constraints

The structure gives AFI Hotels a low-upfront-cost arrangement, but it also limits the certainty of Dotz’s revenue. AFI Hotels can exit every 12 months from the system start date with at least one month’s written notice, and either party can terminate for an unremedied breach after a 30-day cure period. The announcement makes no forecast or guarantee of future savings, fees or performance.

The contract nevertheless advances Dotz’s stated plan to build recurring revenue from ChillerAI deployments in large commercial buildings, alongside its Cyprus activities with Thanos Hotels and MyMall. It follows the company’s earlier first ChillerAI commercial pilot at Limassol Shopping Centre, but the Israeli agreement is a larger, multi-property framework rather than a single pilot.

Recommissioning and Verified Savings Are the Next Tests

Chief executive Nati Harpaz said Dotz’s immediate focus was to recommission the Jerusalem site, demonstrate measured results and then work with AFI Hotels to extend the system to other properties. The next practical milestones are dashboard approval, the Jerusalem baseline period, verified savings and the point at which fees actually start.

Until those steps are completed, the headline annualised figure remains conditional. The more revealing measure will be whether ChillerAI moves beyond the initial site and produces quarterly savings that translate into durable cash receipts across the hotel portfolio.