Ascott is accelerating its
expansion in Asia by forging strategic partnerships with leading
developers in China, Japan and Thailand to manage apartments
currently under development as well as future projects.
In China, Ascott has partnered specialty township
developer, Riverside Group, to launch serviced residences in
Zhejiang, Chongqing and future riverside themed towns in other key
cities. This strategic partnership will start with two serviced
residences with a total of 350 units in Zhejiang and Chongqing. It
follows Ascott’s contract with Riverside Group to manage the
190-unit Ascott Riverside Garden Beijing which opened in November
In Japan, Ascott has entered a business cooperation
with the listed Japanese real estate company, NTT Urban
Development Corporation – a subsidiary of Nippon Telegraph and
Telephone Corporation, to jointly explore serviced residence
opportunities in Japan and are currently working on two projects
in Fukuoka and Yokohama.
In Thailand, one of the country’s top
listed developers, Ananda Development, has expanded into the
serviced residence business through its strategic alliance with
Ascott. The first four properties under the collaboration –
Somerset Rama 9 Bangkok, Ascott Embassy Sathorn Bangkok, Ascott
Thonglor Bangkok and one more property in Sukhumvit 8 – will offer
close to 1,500 apartment units in Bangkok when they open between
2020 and 2021.
Mr Kevin Goh, Ascott’s Chief Executive Officer,
said, “Forming strategic cooperation with well-established
developers is one of Ascott’s key strategies for growth. From
Singapore, to Australia, China, Indonesia, Japan and the Middle
East, the alliances we have forged allow us to gain access to a
variety of large scale, quality projects to fast-track Ascott’s
expansion and broaden our reach to even more gateway cities.
Having some of the biggest industry players choose to partner us
speaks volume of Ascott’s reputation and expertise in managing
award-winning serviced residences globally for over 30 years.”
In addition to the 1,607 units that expanded its portfolio in
January and February, Ascott is adding management and lease agreements for another 14 properties with about 3,400 apartment
units across 10 cities in China, Japan, Thailand and Indonesia
this quarter. This includes a lease agreement with department
store chain, Takashimaya Company, Limited, to operate the first
Citadines Apart’hotel in Osaka.
Slated to progressively open
from this year to 2021, these newly signed properties will mark
Ascott’s maiden entry into Dongguan and Huizhou in China’s
fast-developing Greater Bay Area, as well as deepen Ascott’s
presence in the Chinese cities of Dalian, Haikou, Hong Kong,
Nantong and Shanghai, Osaka in Japan, Bangkok in Thailand, and
Bandung in Indonesia.
Mr Goh, said, “Serviced residences are in
high demand in many parts of the world. In the first quarter of
2018, we have added over 5,000 units to Ascott’s portfolio – more
than 300% growth on a year-on-year basis. China remains our top
source market globally with the Chinese constituting almost a
quarter of our customers and growing. Our latest expansion with
eight new contracts across seven cities in China will further
boost Ascott’s dominance in the market.”
With the eight new
additions in China, Ascott will have over 21,500 units in 118
properties across 33 cities in the country. The newly secured
properties are Ascott Songshan Lake Dongguan, Citadines Songshan
Lake Dongguan, Citadines Putuo Xiangyi Shanghai, Somerset Golden
Pebble Winery Dalian, Tujia Somerset Centreville Haikou Serviced
Residence, Tujia Somerset Jinshan Lake Huizhou Serviced Residence,
Harmony City Elite Apartment Nantong and Hotel Purple Hong Kong.
In Japan, Ascott has more than 3,100 units in 24 properties across
eight cities. In addition to the upcoming first Citadines
Apart’hotel in Osaka, Ascott operates seven other serviced
residences and 16 properties for corporate lease in the country.
According to the latest JETRO Invest Japan Report, Japan’s net
inflows of foreign direct investment reached a record high1 and
demand for serviced residences is likely to grow with the
government’s proactive efforts to attract investment.
the largest international serviced residence owner-operator in
Thailand and Indonesia. In Thailand, Ascott has 21 properties
offering over 4,300 units across Bangkok, Pattaya and Sri Racha.
In Indonesia, with the addition of Somerset Asia Afrika Bandung
that is opening in 2019, Ascott will have over 3,000 units in 17
properties across seven cities.
Ascott has a global target of reaching 80,000
units this year, and to double its portfolio to 160,000 units by