Acott (Singapore) Continues to Grow Globally
21 Jan 2019 - Ascott's portfolio crosses 100,000 units globally, after landing contracts for another 26 properties
CapitaLand's serviced residence arm, The Ascott, has secured contracts for 26 properties with over 4,600 units across 11 countries, the group announced on Monday morning (Jan 21).
Of these properties, half will be established in China from 2019 to 2023, and one is slated to open in Singapore this year.
The new additions will boost Ascott's portfolio to over 100,000 units, and mark a second consecutive year of growth for Ascott.
Said Ascott's CEO, Kevin Goh: "Ascott has been on a strong growth trajectory, crossing over 100,000 units to close a second year of record expansion. Ascott's portfolio grew twice as fast in 2017 over 2016, and even more so in 2018, adding over 30,000 units across 189 properties, the largest number of units in a single year.
"The strategic moves we made in the last few years have helped Ascott achieve an unprecedented growth momentum. These include our investments in Quest Apartment Hotels in Australasia to grow our franchise business, and in Synergy Global Housing, a leading corporate housing provider in the US; our partnership with Tauzia Hotel Management in Indonesia to enter the fast-growing middle-class business hotel segment, and the joint venture with Huazhu Hotels Group (Huazhu) and CJIA Apartments Group (CJIA) to grow our Citadines brand in China."
Separately, Ascott has also entered the Netherlands market with the signing of Citadines Sloterdijk Station Amsterdam, a franchised property in Amsterdam.
Ascott's global footprint now extends to 172 cities across 33 countries, and the company is seeking to expand its presence in India, Indonesia, the Philippines, Thailand and the UK among other countries.
Of the 26 newly secured properties, four Citadines properties - Citadines Ritan Beijing, Citadines Gubei Shanghai, Citadines Pudong International Expo Shanghai and Citadines Xujiahui Shanghai - are secured under Ascott's strategic alliance with Nasdaq-listed Huazhu, one of China's leading hotel operators, and Huazhu's subsidiary CJIA.
Ascott will manage Huazhu's first property outside China - Ji Hotel Orchard Singapore - which Huazhu won under a tender by the Singapore Land Authority.
Located at 11 Penang Lane, Ji Hotel Orchard Singapore will span a gross floor area of over 32,000 square feet, and is a short walk from Dhoby Ghaut MRT station. The hotel will offer 81 rooms and facilities including a cafe, retail outlets and a gymnasium.
Looking ahead, Mr Goh noted that the company has forged other alliances with leading developers in markets including China, Indonesia, the Philippines and Thailand that will allow Ascott to gain access to a pipeline of quality projects, fast-track its expansion and boost its fee income.
"Ascott's fee income will increase exponentially as we continue to go on this accelerated growth path to open more new properties. These various engines of growth will place Ascott in a prime position to achieve our target of 160,000 units worldwide by 2023," added Mr Goh.
The Straits Times