Serviced ApartmentsServiced residences provider adds 26 new signings, bumping up pipeline of secured properties by 40%.

Ascott leapfrogs global expansion over next four years

By
|
Ascott 190715
Tujia Somerset Bao'an Shenzhen will add 336 units when it opens in 2021. It will be part an integrated development that also comprises Somerset Shajing Center Shenzhen.

The new signings have helped leapfrog the total number of contracts secured this year, bumping up the overall number by 40% compared to last year. Ascott has secured 40 properties that will add over 8,000 units. 

Serviced residences provider The Ascott Limited (Ascott) has expanded its global portfolio, signing 26 properties that will be opened in phases over the next four years.

The new properties will add 6,000 units in 22 cities, with the majority signed under management contracts and three through franchise agreements.

The new signings have helped leapfrog the total number of contracts secured this year, bumping up the overall number by 40% compared to last year. Ascott has secured 40 properties that will add over 8,000 units.  

The rate of property openings has also ramped up, with 16 properties launched this year, representing a 70% increase in units compared to 2018.

“We are fast-expanding Ascott’s global network of properties as we continue to pursue an asset-light business model to boost our recurring fee income,” said Ascott’s CEO Kevin Goh.

For the first quarter this year, Ascott’s operational units have contributed S$59.7 million (US$44 million) in fee income. It aims to earn S$25 million in fee income annually for every 10,000 serviced residence units signed, as the properties open and stabilise.

Ascott aims to open over 40 properties with about 8,500 units this year, Goh revealed.

The new round of signings will see Ascott making its debut in six cities, including Atyrau in Kazakhstan, Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea, as well as Cam Ranh and Hoi An in Vietnam.

The remainder of new properties add to Ascott’s other properties in 14 cities, such as Melbourne and Sydney in Australia; Chengdu, Dongguan, Guangzhou, Shanghai, Shenzhen, Wuhan and Xi’an in China; Bogor and Jambi in Indonesia; Cyberjaya in Kuala Lumpur; Cebu in the Philippines; and Bangkok in Thailand.

Ascott has also scaled up some of its brands within the portfolio, including bringing select-service brand Citadines Connect to Bangkok, after Sydney and New York.

It also rolled out the brands under Tauzia, which has a predominantly Indonesia-based portfolio, to countries such as Malaysia and Vietnam.

The flagship property of its co-living brand, lyf, will be opening in Singapore’s Civic and Cultural District in September this year.

Ascott operates more than 64,000 units, with over 48,000 units under development, making a total of more than 112,000 units in over 700 properties.


JDS Travel News JDS Viewpoints JDS Africa/MI