Ascott has signed contracts to manage six
properties with more than 1,200 apartment units in China.
The new properties entrench Ascott’s
presence in Changsha, Shenzhen, Tianjin and Wuhan, while extending
its footprint to two more cities – Handan and Xuzhou.
Mr Tan Tze Shang,
Ascott’s newly appointed Managing Director for China, said, “To ride
on the growth in demand for international-class serviced
residences as we work towards our goal of 20,000 units in China by
2020, we will expand our management and franchise business through
our established Ascott, Citadines and Somerset brands, Tujia
Somerset, as well as our newly unveiled lyf brand designed for and
managed by millennials. We will also look out for investments
opportunities in the first tier cities of Beijing, Shanghai,
Guangzhou and Shenzhen, as well as in provincial capitals like
Wuhan and Hangzhou.”
In China, Ascott is one of the leading
international serviced residence owner-operators with more than
17,300 units in 96 properties across 27 cities.
Of the six new
serviced residences secured, Citadines Sunhope e-Metro Shenzhen,
Ascott’s largest property in China, is slated to open this year.
Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Jundu
Tianjin are scheduled to open next year while Ascott Xiangjiang
FFC Changsha, Citadines Yunlong Lake Xuzhou and Tujia Somerset
Congtai Handan will start operations from 2019.
Last year, Ascott
opened 14 properties in China, adding over 2,000 units to its
Ascott Xiangjiang FFC
Changsha (opening 2019)
The first premier Ascott-branded serviced
residence in Changsha will be located in the heart of the Central
Business District. It will be part of an integrated development that
comprises offices and a shopping mall managed by CapitaLand Mall
Asia. The property is surrounded by banks and financial
institutions and a 30-minute drive from Changsha Railway Station,
close to scenic lakes, parks and museums. Ascott Xiangjiang FFC
Changsha will offer 180 units, ranging from studios, one to
three-bedroom apartments and facilities include a gymnasium,
meeting room, residents’ lounge and children’s playroom.
e-Metro Shenzhen (opening 2017)
With 479 units, Citadines Sunhope e-Metro
Shenzhen is Ascott’s largest property in China. The serviced
residence is part of an integrated project with office and retail
components. It is conveniently located within a five-minute walk
from the metro station and a 10-minute drive from the Central
Business District. Citadines Sunhope e-Metro Shenzhen will have
studio, one-bedroom and two-bedroom apartments, as well as
facilities such as a fitness centre, swimming pool and breakfast
SCPG Centre Wuhan (opening 2018)
Citadines Qingshan SCPG Centre Wuhan is situated
within an integrated development that also houses offices and a
shopping mall. The serviced residence offers guests easy access to
a wide range of amenities such as schools, retail outlets and
hospitals. The Citadines property is located right next to the
Heping Park metro station, estimated to start operations in 2020,
and a 15-minute drive from Wuhan Railway Station. Guests will also
enjoy a bird’s eye view of the nearby Heping park. The serviced
residence will offer 110 units of studios and one-bedroom
apartments. Facilities include a fitness centre, meeting room,
breakfast lounge and launderette.
Citadines Yunlong Lake
Xuzhou (opening 2019)
The 113-unit serviced residence is located at
the intersection of the Central Business District and the city’s
well-known Yunlong Lake in Xuzhou, one of China’s key
transportation hubs. Part of an integrated development which
comprises a shopping mall, the serviced residence is right next to
the upcoming metro station (Line 5), expected to be opened in
2022. It is also a 15-minute drive from Xuzhou Railway Station.
The property will have one- and two-bedroom apartments, as well as
facilities such as a breakfast room, fitness centre, residents’
lounge and children's playroom.
The two new properties are located in bustling
city centres in Handan and Tianjin. The 135-unit Tujia Somerset
Jundu Tianjin is scheduled to welcome guests in 2018 while the
200-unit Tujia Somerset Congtai Handan is due to open in 2019.
Both properties are close to metro stations, attractions, shopping
malls, schools and parks. The serviced residences will have
24-hour reception and security. Apartments are equipped with
kitchenettes and laundry facilities and guests can choose from
studios to three-bedroom units. The properties will also have
facilities such as breakfast areas, meeting rooms, gymnasiums and
a swimming pool.
“Ascott crossed the 50,000-unit milestone
last year, and there will be no let-up in our efforts to build up Ascott’s global scale and accelerate our growth in 2017. By
expanding our network, the management fees we get over time will
strengthen Ascott’s earnings profile to deliver sustainable
returns and drive return on equity. We clinched a record 10,000
units in 2016 and this is expected to contribute S$25 million to
S$30 million of fee income to Ascott annually as the properties
progressively open and stabilise. As we expand across our
different brands to offer more accommodation choices and tailored
experiences to our customers internationally, we are confident of
achieving our global target of 80,000 units by 2020,” said Mr Lee Chee Koon, Ascott’s
Chief Executive Officer (CEO). “In addition to management contracts, we will continue to
seek acquisitions and franchises. We will also look at ways to
strengthen our edge by transforming Ascott’s business, and forming
strategic alliances with leading tech-players, property developers
and capital partners. Having greater scale gives us a stronger
negotiating power with partners and vendors. It will also enable
us to better invest in capabilities such as technologies and new
systems to enhance our competitiveness.”
Ascott will open more than 30 properties
worldwide this year, of which 16 will be in China.
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