Ascott expands globally with 26 new properties

Leading international lodging owner-operator The Ascott Limited (Ascott), is accelerating its growth globally with the signing of 26 properties with over 6,000 units across 22 cities and 11 countries.

The properties, which will open in phases from 2019 to 2023, are mostly signed under management contracts, with three on franchise agreements.

To date this year, Singapore-based Ascott, a wholly-owned subsidiary of CapitaLand Limited, has signed contracts for over 40 properties with more than 8,000 units, an increase of over 40 per cent in units compared on the same period in 2018.

Kevin Goh, Ascott’s chief executive officer, said: “We are fast expanding Ascott’s global network of properties as we continue to pursue an asset-light business model to boost our recurring fee income.

Kevin Goh, Ascott’s chief executive officer

“While we achieve strong momentum in expanding our global lodging business through strategic alliances, management contracts, franchise and leases, we are also accelerating the number of new property openings.”

Goh said that operational units had contributed S$59.7m of fee income during the first quarter of 2019, and that the company aims to open more than 40 properties with about 8,500 units this year.

“For every 10,000 serviced residence units signed, we are expecting to earn approximately S$25 million in fee income annually as the properties progressively open and stabilise,” he added.
“Through these growth strategies, we are looking forward to the fee income boost when we achieve our target of 160,000 units worldwide by 2023.”

The majority of the 26 new properties are in Asia Pacific, which continues to see strong demand for lodging in tandem with lower cost of travel, improving travel infrastructure and the middle-class demographics’ growing disposable income and aspiration to travel.

By 2022, global lodging sales are forecast to reach US$812 billion, with Asia Pacific remaining the second largest market.

With these new properties, Ascott has made inroads into six new cities across Asia Pacific, Central Asia and Africa. It has forayed into Atyrau in Kazakhstan, Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea, as well as Cam Ranh and Hoi An in Vietnam.

Ascott has also expanded its presence in 14 cities – Melbourne and Sydney in Australia; Chengdu, Dongguan, Guangzhou, Shanghai, Shenzhen, Wuhan and Xi’an in China; Bogor and Jambi in Indonesia; Cyberjaya in Kuala Lumpur; Cebu in the Philippines; and Bangkok in Thailand.