The move represents Ascott’s first major move into the lodging segment beyond its core serviced residence business and existing business in apartments for corporate lease.
CapitaLand-owned Ascott is investing about US$26 million for a 70% stake in Tauzia Hotel Management, one of Indonesia’s top five hotel operators.
The move represents Ascott’s first major move into the lodging segment beyond its core serviced residence business and existing business in apartments for corporate lease.
Ascott will acquire 20,000 units spanning 122 hotels across Indonesia, Malaysia and Vietnam, half of which are under development. This puts Ascott’s portfolio at more than 94,000 units globally, surpassing its 2020 target of 80,000 units.
Kevin Goh, Ascott’s chief executive, said Ascott could capitalise on significant opportunities in the middle-class business hotel segment “which is expanding at an unprecedented rate”.
“This is brought on by the rise of the gig economy, super commuters, infrastructure builders, other project-based workers, and tech-savvy, self-sufficient, and value-conscious leisure travellers.”
Goh said Ascott was also looking to expand beyond serviced residences.
“Together with earlier platform investments in Synergy Global Housing and Quest Apartment Hotels, increasing the scale of our business will allow us to achieve greater synergies in cross-selling and operational efficiencies as well as better customer outreach.”
Goh said the investment in Tauzia anchored Ascott’s position as “a dynamic chain player in the lodging industry”.
Tauzia’s brands include Harris Hotels, Preference Hotels, Yellow and Pop!