Ascott plans to double number of global-branded properties in China by 2028 

THE Ascott Limited (Ascott) aims to double its portfolio of assets bearing its global brands in China by 2028, and plans to open over 20 new Chinese properties this year alone.

The lodging operator, which now manages over 17,000 units spanning 90 properties in China across its global brands such as Ascott, Somerset, lyf and Oakwood, sees strong potential for growth coming from China.

Tan Bee Leng, Ascott’s managing director for brand and marketing, said: “From a business perspective, China is a very key contributor for us at The Ascott.”

Despite the pandemic restrictions in China in 2022, Chinese guests still accounted for almost 20 per cent of Ascott’s revenue in 2022, driven by strong domestic demand.

Revenue growth contributed by Chinese guests grew by 24 per cent in 2022, compared to 2019. 

With the resumption of flights and visa-free travel to China, Tan expects to “see a lot of potential” for further growth. From Jul 26, 2023, China resumed the 15-day visa-free entry for Singaporeans more than three years after it was suspended. 

This year, Ascott plans to open over 20 properties in China to cater to growing traveller demand with the rise of corporate travel and the rebound of tourism. It has almost 100 properties in the pipeline slated to open in the country by 2028.

When asked whether she sees China’s contribution to Ascott’s revenue growing, Tan said: “By the sheer size of China, in terms of brand representation, we have the widest representation here. But the other geographies such as Australia, Japan and Europe are also extremely important from an average day rate perspective.”

She noted that other factors such as the strength of a market’s currency also have an impact on revenue contribution.

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Since Ascott began operating in China in 1998, it has gradually expanded the range of properties it manages to cater to families, working professionals and millennials.

In January 2023, the lodging operator opened Ascott Dadonghai Bay Sanya, a 186-unit property surrounded by mountains and facing the sea. The Sanya property marks the group’s first resort destination for its Ascott assets, which are typically urban city properties.

The Ascott Dadonghai Bay Sanya can welcome both short and long-term visitors and offers guest experiences such as pearl jewellery-making, in line with Ascott’s strategy to deepen hospitality experiences across its properties worldwide. 

Lydia Li, Ascott China’s head of sales, marketing and digitalisation, said having the flexibility to offer shorter stays is in “response to market demand” in China. 

While first-tier cities such as Shanghai and Beijing often have properties with 100 per cent occupancy by long-stay guests, in other regions of China, long-stay guests may only account for up to half of occupancy. The remaining occupancy would need to be filled with short-stays, she said. 

“The hotel-in-residence model allows us to expand opportunities to cater to the needs from both extended and short-term stay (guests).”