Ascott is ramping up its expansion plans with a
target to double its portfolio to 160,000 units globally by 2023.
Hot on the heels of its recent signing of nine management
contracts in China, Ascott has clinched contracts to manage
another four properties with 1,200 units in new cities such as
Malacca in Malaysia and Davao in Philippines while deepening its
presence in Guangzhou in China and Cebu in Philippines.
Mr Kevin Goh, Ascott’s Chief Executive Officer,
said, “With the global economic upswing and international travel
arrivals hitting a new high, we are confident of exceeding 80,000
units this year. We see immense potential to scale up to 160,000
units worldwide in the next five years. Besides accelerating our
growth through management contracts, which currently make up 60%
of our portfolio, we will continue to seek opportunities for
strategic investments in strong operating businesses that will
widen our customer reach and give us a competitive edge. We will
also grow our franchise business, particularly through our
Citadines and Quest brands, and form strategic alliances with
leading companies that have a pipeline of properties for us to
“We will focus on key gateway
cities in our two biggest markets, China and Southeast Asia, as
well as markets such as Australia, Europe, Japan, South Korea and
the U.S. Expanding our global network will allow us to leverage
greater economies of scale and strengthen our earnings. To
position Ascott for the future, we will harness digital innovation
and technology to enhance customer experience. For instance, our co-living brand, lyf, targeted at the millennials will provide
guests with a complete digital experience,” Mr Goh added.
With its latest deals, Ascott has entered new destinations Malacca and Davao. Its Somerset
property in Malacca, Ascott’s largest property to date, will
benefit from an upcoming free economic zone and sea port.
Meanwhile, its foray into Davao will anchor Ascott in
Philippines’ third fastest-growing economy which also serves as
the economic and tourism hub of Southern Philippines. Ascott’s
fifth property under its lyf brand will be in Cebu, the top
investment destination in Philippines outside Metro Manila.
With Ascott also increasing its presence in Guangzhou, it has
reinforced its leading position as one of the largest serviced
residence operators in China.
Mr Goh said, “The Chinese are our top customers
at our properties globally and continue to be the fastest growing
segment in 2017, growing at 33% year-on-year. Besides opening more
properties in China, we have stepped up our online marketing
efforts tailored for the China market to better capture the
Chinese travellers’ demand for properties both in and outside of
China. For instance, Ascott has one of the largest serviced
apartment listings on Fliggy, which has more than 200 million
users. Our properties on Fliggy cover over 50 cities most popular
amongst Chinese travellers, such as Singapore, Bangkok, Tokyo,
Paris and London.”
With these new additions, Ascott currently has
more than 160 properties with about 30,000 units under development
worldwide. About 35 of these properties with more than 6,500 units
are scheduled to open this year, half of which are in China, and a
quarter in Southeast Asia. The rest are in countries such as Australia,
France, India, Saudi Arabia, and the United Kingdom, including Ascott’s first property in Africa.
The new management contracts have increased
Ascott’s portfolio in Southeast Asia to about 23,000 units in 111
properties across 34 cities. Its newly secured properties in
Guangzhou has also strengthened Ascott’s foothold in China with
over 20,000 units in about 110 properties across 31 cities.