CapitaLand Ascott Trust marks 20 years with earnings growth, active capital recycling and $8.9 bil assets
The 224-room ibis Styles Tokyo Ginza (pictured ) was acquired with another freehold hotel property, Chisun Budget Kanazawa Ekimae in January 2025 (Photo: CLAS)
Twenty years after its listing, CapitaLand Ascott Trust (CLAS) has grown into Asia Pacific’s largest lodging trust, with total assets of $8.9 billion as at end-2025.
For the financial year ended Dec 31, 2025 (FY2025), CLAS reported an 11% year-on-year increase in income available for distribution to $256.7 million. Total distribution to unitholders amounted to $233.5 million, after retaining $23.2 million to fund asset enhancement initiatives (AEIs) and for general corporate and working capital purposes.
In 2025, CLAS completed about $300 million of divestments at a significant premium to book value, unlocking more than $50 million in net gains, the trust announced on Jan 29. Proceeds from earlier divestments were redeployed into over $210 million of accretive acquisitions during the year.
These acquisitions comprised two hotels and three rental housing properties in Japan. The rental housing assets are located in cities with strong demand fundamentals, achieving average occupancies of more than 95% and average lease terms of around two years.
CLAS’ global portfolio now comprises 103 properties with more than 18,000 units across 45 cities in 16 countries in Asia Pacific, Europe and the US. The trust has exposure to key gateway cities such as Barcelona, Ho Chi Minh City, Kuala Lumpur, London, Paris and New York, with properties largely operated under brands including Ascott, Somerset, Quest and Citadines.
Two AEIs were completed in Paris and Seoul in 2025. Looking ahead, CLAS has five more AEIs planned for 2026 and 2027 to enhance asset performance and value. These include The Cavendish London in the UK; Sotetsu Grand Fresa Osaka-Namba in Japan; Sheraton Tribeca New York Hotel in the US; Citadines Place d’Italie Paris in France; and Sydney Central Hotel in Australia.
The Cavendish London will be rebranded under The Crest Collection — a heritage-inspired luxury brand managed by The Ascott Ltd (Photo: CLAS)
CLAS acquired the 230-room The Cavendish London in November 2023. Located in the prime Mayfair district, The Cavendish London will be rebranded under The Crest Collection — a heritage-inspired luxury brand managed by The Ascott Ltd, CLAS’ sponsor. Following the AEI, the property’s EBITDA yield is expected to reach 6.1% on a stabilised basis, with its valuation projected at £316 million.
As at Dec 31, CLAS’ gearing stood at 37.7%, well below the regulatory limit of 50%, providing what the trust describes as ample headroom to support future growth.
Sustainability efforts also gained momentum. By end-2025, CLAS had achieved green certification for 70% of its portfolio by gross floor area, surpassing its target of 50% by 2025 and remaining on track to green 100% of its portfolio by 2030.
Serena Teo, CEO of CLAS’ managers, says the next phase of growth will focus on strengthening the trust’s presence in key markets while actively recycling capital. “We are progressing towards our medium-term portfolio allocation of 25%–30% in the living sector, while maintaining 70%–75% in hospitality assets,” she says.
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