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Ascott signs more than 14,100 new units under management in 2019

/ EdgeProp Singapore |

December 18, 2019 3:50 PM SGT

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SINGAPORE (EDGEPROP) - The Ascott Ltd, CapitaLand’s wholly-owned lodging business unit, will end the year with the signing of more than 14,100 new units across about 100 properties worldwide. This includes its acquisitions of two properties in Sydney, Australia through its Reit, Ascott Residence Trust (ART), and its private fund, Ascott Global Serviced Residence Fund.

This year, Ascott has a record opening of about 7,500 units in more than 40 properties, located across 30 cities in 13 different countries. This includes its first property in The Netherlands. The company signed 25 new franchise and management contracts this year that comprise more than 3,400 units.

Ascott opened Citadines Rochor Singapore on 12 December this year. The serviced residence is part of the integrated development Tekka Place (Picture: The Ascott Ltd)

The company also opened lyf Funan Singapore, its first co-living property under its lyf brand that targets millennial-minded residents.

Ascott CEO Kevin Goh says: “With our recent signing of 25 new properties across Asia-Pacific and Africa, we have reached about 115,000 units in over 700 properties worldwide. More than 60% of our portfolio, which is operational, has contributed $182.1 million of fee income.”

The company aims to open about 10,000 units next year to further boost its fee income. Its direct bookings and revenue from online bookings by members of its loyalty programme, Ascott Star Rewards, launched in April this year, have quadrupled and membership has tripled.

Ascott ventured into new markets this year, such as Abidjan in Ivory Coast and Vung Tau in Vietnam. It also grew its presence in established locations, including Melbourne and Sydney in Australia, Chengdu and Guangzhou in China, Jakarta and Yogyakarta in Indonesia, and Penang in Malaysia.

Set to open in 2022, Ascott Riviera Golf Abidjan is Ascott’s first property in Ivory Coast, West Africa. The 100-unit serviced residence will offer studio, one-bedroom and two-bedroom apartments. (Picture: The Ascott Ltd)

The company also has 10 properties that were secured under its strategic alliance with Huazhu Hotels Group, and its subsidiary CJIA Apartments Group. It secured 12 properties this year with Indonesian company TAUZIA Hotel Management, where Ascott also has a majority stake.

Goh adds that Ascott is on track to reach its global target of 160,000 units by 2023, and it will continue to grow its recurring income via management contracts, franchises, leases, strategic alliances, and investments in quality assets.

Expanding through its Reits and funds is a key growth strategy. “With the combination of ART and Ascendas Hospitality Trust, we will have the largest hospitality trust in the Asia-Pacific with an asset value of $7.6 billion,” Goh says.

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