Tuesday, 22 January 2019

ASCOTT CROSSES 100,000 LODGING UNITS GLOBALLY WITH BUMPER SIGNING OF 26 PROPERTIES IN 18 CITIES

CapitaLand’s wholly owned lodging business unit, The Ascott Limited (Ascott), has secured contracts for another 26 properties with over 4,600 units across 18 cities and 11 countries. The new additions boost its portfolio to over 100,000 units. This marks a second consecutive year of record growth for Ascott with the addition of over 30,000 units across 189 properties in 2018, making it one of the fastest growing global players in the lodging industry. Ascott has entered the Netherlands market with the signing of Citadines Sloterdijk Station Amsterdam, a franchised property in Amsterdam. It has also expanded its presence in China, India, Indonesia, Philippines, Singapore, Thailand, Turkey, Vietnam, United Arab Emirates and the United Kingdom. Ascott’s global footprint now extends to 172 cities across 33 countries. 

Mr Kevin Goh, Ascott’s Chief Executive Officer, said: “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 U.S; our partnership with TAUZIA Hotel Management in Indonesia to enter the fast-growing middleclass business hotel segment and the joint venture with Huazhu Hotels Group and CJIA Apartments Group to grow our Citadines brand in China.” 

Mr Goh added: “We have also forged strategic alliances with leading developers in markets such as China, Indonesia, Philippines and Thailand that will allow us to gain access to a pipeline of quality projects, fast-track Ascott’s expansion and boost our fee income. We opened a record number of 27 properties with more than 4,200 units in 2018, including our first property in Africa, Kwarleyz Residence Accra. 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.” 

Leveraging strategic partnerships 
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 HuazhuHotels Group (Huazhu), one of China’s leading hotel operators, and Huazhu’s subsidiary CJIA Apartments Group (CJIA). Huazhu has the third largest market share in China’s midscale hotel segment with over 400,000 hotel rooms across more than 4,000 properties. Stepping up on the partnership, Ascott will also manage Huazhu’s first property outside China – Ji Hotel Orchard Singapore, which Huazhu has won under a tender by the Singapore Land Authority. 

In addition, Ascott has partnered with MCC Real Estate Group Co Ltd, a subsidiary of Chinese state-owned enterprise China Metallurgical Group Corporation 1 (MCC), to manage two Citadines properties in Hangzhou – Citadines West Lake Cuiyuan Hangzhou and Citadines Wulin New Town Hangzhou – and to jointly explore opportunities to further expand in major cities in China. Tapping on its alliance with Vanke, Ascott will also manage two properties in Chengdu – Ascott Tianfu Chengdu and Somerset Gaoxin Chengdu. 

Through its joint venture with Tujia, China’s largest online apartment sharing platform, Ascott has inked Tujia Somerset Sumyip Taifu Plaza Shenzhen Serviced Residence and Tujia Somerset Honor Mansion Shijiazhuang Serviced Residence, bringing the total to 16 Tujia Somerset serviced residences in China

Ascott to expand together with TAUZIA 
YELLO Hotels, one of the six lifestyle brands under TAUZIA, caters to aspirational travellers who appreciate hotels with creative designs and technology. The upcoming 100-room YELLO Batu features constructive street art murals by international and local artists on its façade and at the lobby and function areas. To deliver an enhanced digital experience, YELLO Batu helps guests stay connected by offering gadgets to surf the web, check emails and stream entertainment at the Netzone, while its Gaming Station is home to the latest gaming consoles, providing fun for people of all ages. The hotel is close to popular theme parks in the city of Batu, such as Museum Angkut, Jawa Timur Park 1 and Jawa Timur Park 2.

Extending footprint to new cities 
In addition to its expansion into Netherlands with the signing of Citadines Sloterdijk Station Amsterdam, Ascott is also making its maiden entry into Goa, India. Goa is a popular international tourist destination as well as a meetings and conventions venue for both corporate and leisure travellers. The new Citadines Calangute Goa and Citadines Candolim Goa will be the first international branded serviced residences in Goa when they open. 

Citadines City Center Rayong – Ascott’s debut in Rayong, Thailand, will cater to the corporate market in Map Ta Phut, Thailand’s largest industrial estate and the world’s eighth largest petrochemical hub located in the country’s Eastern Economic Corridor. 

Strengthening presence in existing markets 
Ascott has further bolstered its position as the largest international serviced residence owneroperator in Vietnam and the Philippines through management contracts for its first premier Ascott-branded serviced residence in Ho Chi Minh City – Ascott Centennial Saigon, and two new Citadines properties in Manila – Citadines Leviste Makati and Citadines Malate Manila. 

In China, Ascott has also consolidated its presence by clinching contracts to manage three other serviced residences – Citadines Songjiang Shanghai, Somerset Bio-Island Guangzhou and Somerset Yongningmen Xi’an. 

The company is deepening its presence in United Kingdom with Citadines Wembley London, its seventh property in the country. 

In the Middle East and Turkey, Ascott has secured contracts for three properties with over 500 units in Dubai, United Arab Emirates and Istanbul, Turkey. Citadines Nivo Istanbul and Citadines Maslak Istanbul are both under management contracts while Citadines Metro Central Dubai is under a franchise agreement. 
Please refer to the Annex for the new properties added to Ascott’s portfolio.

Visit www.capitaland.com for more information.

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