Dotz Energy signs five-year ChillerAI agreement with AFI Hotels (VERT Hotels)
Dotz Nano Limited (ASX: DTZ) has signed a five-year services agreement with Africa Israel Hotels (AFI Hotels), operator of the VERT hotel brand, through its wholly owned Israeli subsidiary, Dotz Nano Ltd. The agreement covers six hotels with approximately 3,705 tons of installed cooling capacity, a fee based on 40% of actual savings and no installation fee.
The agreement is dated 29 October 2026 and was countersigned by AFI Hotels on 4 November 2026. Under it, Dotz will supply, install and operate ChillerAI, its AI-based system for the dynamic management of large air-conditioning chiller plants, and provide related support services.
The company’s headline summary puts income at $174K per annum.
Nati Harpaz, Chief Executive Officer
“…Our model is simple: we are paid only from the savings we deliver, and both parties review those savings every quarter.”
Key terms at a glance
| Term | Detail |
|---|---|
| Term | Five years from 29 October 2026 |
| Sites | Six AFI Hotels properties in Israel, with further buildings by agreement |
| Revenue model | Monthly fee on 40% of actual air-conditioning electricity savings, reviewed quarterly |
| Indicative fees | Approx. NIS 32,176 per month (approx. A$14,500) across the six hotels |
| Installation | Within 60 business days of signing, or another agreed date |
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How the performance-based model works
Fees are performance-based, so Dotz is paid only from verified savings. Savings and payments are reviewed and approved at quarterly meetings, with periodic true-up adjustments in favour of either party to reflect actual savings.
For investors, the model aligns Dotz’s revenue with measured customer outcomes. It is consistent with the company’s strategy of building recurring revenue from ChillerAI deployments in large commercial buildings, alongside its Cyprus activities with Thanos Hotels and MyMall.
The schedule sets an agreed order of priority for implementation:
- VERT Jerusalem (active)
- VERT Eilat
- VERT Lagoon Netanya
- Crowne Plaza Tel Aviv City Center
- POLI Urban Tel Aviv
- VERT Dead Sea
Deployment beyond VERT Jerusalem remains subject to site readiness and implementation planning with AFI Hotels.
On termination, AFI Hotels may exit the agreement every 12 months from system start date on at least one month’s written notice. Either party may terminate for unremedied breach (30 days).
What is dynamic chiller management and why does it matter?
A chiller plant is the large system that cools a big building, and for hotels it is a major electricity load. ChillerAI is described as an AI-based system for the dynamic management of these plants, with the aim of reducing the electricity they consume.
Because the fee is calculated on measured savings, Dotz’s income rises only if those savings are delivered.
AFI Hotels first engaged with ChillerAI under a 2023 proposal, and the system was previously installed at VERT Jerusalem and VERT Lagoon Netanya. This agreement renews that engagement with Dotz as the contracting party.
What happens next for Dotz and AFI Hotels
The announcement sets out the following steps:
- A joint kick-off meeting between Dotz and AFI Hotels will review the current condition of the sites, agree the actions required to re-commence operations and finalise a work plan with responsibilities and timelines for each property.
- AFI Hotels’ approval of Dotz’s monitoring and control dashboard is a condition of commencement.
- The VERT Jerusalem installation will be migrated to the Dotz Energy ChillerAI cloud platform and the system re-commissioned before monthly fees commence.
- Installation is due within 60 business days of signing of the agreement (or another agreed date).
- A baseline measurement period of approximately 30 days follows installation and regular operation, after which monthly fees commence.
- Dotz will update the market on material developments under its continuous disclosure obligations.
Chief Executive Officer Nati Harpaz said the focus now is disciplined execution. He added that the company is in active discussions with several other partners and is also focusing on cost reduction across the business.
The company’s cost focus also sits against a recent $2 million share sale and a non-binding GridFeed acquisition term sheet, which would extend Dotz into solar and grid software if final agreements are reached.
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