CapitaLand Investment’s Ascott to add 600 units to India portfolio, eyes growth in country
It aims to expand its portfolio there to some 12,000 apartments by 2028
[SINGAPORE] Ascott, the lodging business of CapitaLand Investment (CLI) , has inked three agreements to add 600 units to its India portfolio, a move that will grow its total portfolio in the country to around 6,100 units across 22 properties.
The new units, spread across three signings under its Oakwood brand, will be located in the cities of Lucknow and Thanjavur, and the state of Goa.
Oakwood Sensation Dona Paula Goa, a 150-unit property located in the tourist destination of Dona Paula in Goa, will cater to “bleisure”, or business and leisure travel. Set to open in 2028, it will be designed for long and short stays, and will house food and beverage outlets and meeting spaces, said Ascott.
Oakwood Thanjavur, a 100-unit property set to open in 2028, will be located in the Tier-3 city of Thanjavur in the state of Tamil Nadu.
Oakwood Ekana Sportz City Lucknow, a 350-unit property located in the Tier-2 city of Lucknow, the capital of Uttar Pradesh, is set to open in 2029. It will be situated in Ekana Sportz City, which houses sporting venues alongside residential, commercial, hospitality and medical facilities.
Ascott also plans to increase its India portfolio to some 12,000 units by 2028, more than double the roughly 5,500 units in its portfolio as at the end of 2024.
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The expansion plans come on the back of favourable growth prospects in the Indian hospitality market, said Ascott on Thursday (Apr 10).
Kevin Goh, chief executive officer of Ascott, noted that India is an important market for Ascott given its strong growth potential as the country is evolving into one of the world’s largest economies, with leisure and recreation spend set to double by 2030, a 2023 report by McKinsey & Co indicated.
“With a rapidly growing middle class, increasing disposable incomes and improving infrastructure, India’s dynamic economic landscape is unlocking immense opportunities for its travel and hospitality sectors,” he said.
The hospitality sector in India presents tremendous growth opportunities for Ascott given the country’s limited supply of branded hotel rooms, which creates a “significant demand-supply gap”, he said.
Lee Ngor Houai, chief operating officer for Europe, Middle East, Africa, South Asia and China, said that Ascott will look to expand its presence to more areas across the country.
Currently, 85 per cent of its India portfolio is concentrated in Tier-1 cities such as Bengaluru, Chennai and Hyderabad.
The group will continue strengthening its presence in Tier-1 cities while simultaneously expanding its focus on fast-growing Tier-2 and Tier-3 cities.
This strategy is underpinned by rising interest in India’s lesser-travelled destinations and “the significant under-penetration of branded hotels in these cities”, said Lee.
The group also sees potential in bringing its social living brand lyf to India, to tap the country’s growing urban millennial and Gen Z workforce and rising digital-nomad trend, Lee added.
Ascott, the wholly owned unit of global real asset manager CLI, manages and franchises lodging options including serviced residences, hotels, resorts, social living properties and branded residences. Its portfolio has around 980 properties across more than 230 cities in over 40 countries.
CLI is the investment management arm of CapitaLand Group, with assets related to retail, office, lodging, industrial, logistics, business parks, wellness, self-storage, data centres, private credit and special opportunities. Its assets under management stood at S$136 billion as at December 2024, with funds under management at S$117 billion.
Shares of CapitaLand Investment were trading up 5 per cent or S$0.12 at S$2.52 as at 2.35 pm on Thursday.
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