Ascott expands global presence with 26 more properties
By Timothy Tay
/ EdgeProp |
The Ascott Limited has signed management contracts and franchise agreements to oversee 26 more properties in 22 cities across 11 countries. Most of the new properties are in the Asia-Pacific region, and will open in phases from this year to 2023. Ascott is a wholly owned lodging business unit of property giant CapitaLand.
This latest expansion adds about 6,000 units to the company’s global portfolio. So far this year, Ascott has signed contracts for over 8,000 units across more than 40 properties, an increase of 40% in terms of units compared with the same period last year. “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,” says Kevin Goh, CEO of Ascott.
Somerset Chanba Xi’an (Opening in 2022) is located in Fuxin Commercial Development Zone. It is one of the newest properties managed by Ascott. (Picture: The Ascott Limited)
Ascott has achieved strong momentum in its expansion through strategic alliances, management contracts, franchise and leases, and will accelerate the number of new property openings. Ascott aims to open more than 40 properties comprising about 8,500 units this year. It has opened 16 new properties so far this year. It is gearing up to open its flagship co-living property lyf Funan Singapore in September this year.
The company’s operational units contributed $59.7 million in fee income for the first three months of this year. The company expects that for every 10,000 serviced residence units it opens, it will earn about $25 million in annual fee income as the properties open and stabilise. “We are looking forward to the fee income boost when we achieve our target of 160,000 units worldwide by 2023,” says Goh.
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