Ascott inks contracts for six properties in China

THE Ascott Limited, CapitaLand's wholly owned serviced residence business unit, secured contracts to manage six properties with more than 1,200 units in China.

The new properties strengthen Ascott's presence in Changsha, Shenzhen, Tianjin and Wuhan, while extending its footprint to Handan and Xuzhou.

Ascott is also set to boost its fee income by opening an all-time high of more than 30 properties this year, of which 16 will be in China.

Lee Chee Koon, Ascott's chief executive officer, said: "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."

China is Ascott's fastest-growing and largest market. It has more than 17,300 units in 96 properties across 27 cities in China. Last year, Ascott opened 14 properties in China, adding over 2,000 units to its portfolio.

With Ascott's aggressive expansion, it has appointed Kevin Goh as chief operating officer to assist the CEO in overseeing operational aspects of the business and new growth opportunities, especially relating to its digital and online strategy.

Prior to this, Mr Goh was Ascott's managing director for North Asia since 2013, responsible for investments and operations in China, Japan and South Korea.