Ascott bags five new management contracts in China
This brings its China portfolio to 12,000 apartment units; next target is 20,000 units by 2020
Nisha Ramchandani
Singapore
CAPITALAND'S serviced residence business The Ascott has landed contracts to manage five additional properties in China, boosting its portfolio to 12,000 apartment units in the populous country.
In a statement to the Singapore Exchange on Monday, CapitaLand announced that The Ascott would manage 1,000 more apartment units in Yinchuan, Changsha, Shenyang and Xi'an.
Lee Chee Koon, The Ascott's chief executive, said: "China is The Ascott's fastest growing market. As the world's second-largest economy, it continues to present tremendous opportunities. Having crossed our target of 12,000 apartment units ahead of 2015, we are now aiming at 20,000 units in China by 2020.
This is in line with our global target of 80,000 apartment units by 2020."
The new contracts marks The Ascott's entry into the high-growth cities of Yinchuan and Changsha, making it the first international serviced residence owner-operator there. Three properties - the 200-unit Citadines Xingqing Yinchuan, the 150-unit Somerset Xingqing Yinchuan and the 164-unit Somerset Riverside Changsha - are expected to open in 2018.
Kevin Goh, The Ascott's managing director for North Asia, said: "As the first international serviced residence operator to enter Yinchuan and Changsha, The Ascott will enjoy first-mover advantage in capturing the city's significant untapped demand for spacious, secure and homely accommodation."
Yinchuan, the capital of Ningxia Hui Autonomous Region, is a fast-developing tourism and business hub, with cultural attractions and natural resources.
Changsha, the capital city of Hunan province, is also a popular tourist destination and home to nearly 50 Fortune 500 companies with branch offices or projects in the city.
Ascott also plans to launch its second property in Shenyang, the 330-unit Somerset Olympic Centre Shenyang, next year, and its fifth property in Xi'an, the 156-unit Somerset Xindicheng Xi'an, in 2016.
Ascott has more than 24,000 serviced residence units in major cities of the Asia-Pacific, Europe and the Gulf, as well as more than 12,000 units under development.
