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CapitaLand’s Ascott signs 26 new properties, enters 6 new cities

Somerset City Centre Atyrau.jpg
CapitaLand's lodging business unit The Ascott has signed 26 new properties, a move which will see it entering six new cities - namely Atyrau in Kazakhstan (pictured), Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea, as well as Cam Ranh and Hoi An in Vietnam.

CAPITALAND's lodging business unit The Ascott has signed 26 new properties, a majority of which are under management contracts, with three on franchise agreements, it said on Monday just after the market opened. 

These properties, which will open in phases from 2019 to 2023, cover 6,000 units across 22 cities and 11 countries – a bulk of which are in the Asia-Pacific. Other regions include Central Asia and Africa.

The move will also see Ascott entering six new cities - namely Atyrau in Kazakhstan, Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea, as well as Cam Ranh and Hoi An in Vietnam.

It has also strengthened its presence in 14 cities, including Melbourne and Sydney in Australia; Chengdu, Dongguan, Guangzhou, Shanghai, Shenzhen, Wuhan and Xi’an in China; Bogor and Jambi in Indonesia; Cyberjaya in Kuala Lumpur; Cebu in the Philippines; and Bangkok in Thailand.

In addition, Ascott has expanded its select-service business hotel brand Citadines Connect to Bangkok in Thailand, after Sydney in Australia and New York in the United States. It has also brought the hotel brands under TAUZIA, which it has a majority stake in, to Malaysia and Vietnam beyond Indonesia.

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Ascott also signed its fifth Citadines property under its partnership with Huazhu Hotels Group (Huazhu) and Huazhu unit CJIA Apartments Group.

In the year to date, Ascott has signed contracts for over 40 properties with over 8,000 units, a more than 40 per cent increase in units compared to a year ago. It also opened 16 properties with over 2,000 units, 70 per cent up from a year ago.

Ascott chief executive Kevin Goh added that in the first quarter, operational units have contributed S$59.7 million of fee income.

This year, Ascott is targeting to open over 40 properties with 8,500 units. With every 10,000 serviced residence units signed, Ascott is also expecting to earn around S$25 million in fee income annually as the properties progressively open and stablise.

“Through these growth strategies, we are looking forward to the fee income boost when we achieve our target of 160,000 units worldwide by 2023,” Mr Goh added.

CapitaLand shares were trading at S$3.67, down two Singapore cents or 0.54 per cent at 10.05am. 

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