Ascott dials up hospitality experiences to capture demand, counter business volatility
Jessie Lim
THE Ascott Limited (Ascott), known for its serviced apartments, will be deepening its hospitality experiences across its properties worldwide as the company adapts to changing travel preferences post-pandemic.
To welcome a wider range of guests including short- and long-term visitors, solo travellers and families, Ascott – its flagship brand – will be enhancing the room mix. It will also launch themed suites and offer local experiences.
This comes after its sister brands Citadines and Somerset went through a brand refresh last year. Two other brands under the company – Oakwood and The Crest Collection – will undergo a similar exercise later this year.
The increased focus on a hotel-in-residence model – where guests stay at serviced apartments with the facilities and amenities of a hotel – comes as travel preferences have evolved.
Tan Bee Leng, Ascott’s managing director for brand and marketing, said: “Ascott was traditionally thought of as an accommodation provider specifically geared towards business travellers working on long-term projects, or perhaps relocating.
“Our apartments have now become a lodging option even for those staying for (just) a few days.”
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Ascott’s transformation began during the Covid-19 pandemic, which proved to the lodging operator that demand and market segments can change any time, Tan said.
She added: “We wanted to have a model that allows us to capture market demand regardless of the times.”
In 2021, despite the pandemic, Ascott opened more than 8,200 units across 40 properties, more than double the units it opened in 2020.
With the recovery of international travel, the company plans to launch over 13,500 units across 70 properties – its highest number of openings to date.
Ascott’s rapid expansion was made possible through its asset-light strategy, which allowed it to double its number of units every five years. It grew from 20,000 units in 2008 to more than 160,000 units across some 900 properties today.
The company focuses on managing quality hospitality assets, as opposed to owning them. To date, more than 80 per cent of the units are under management and franchise contracts, up from 43 per cent 10 years ago.
It has also set an ambitious target of doubling fee revenue to over S$500 million in the next five years. It plans to accomplish this by focusing on quality growth and securing contracts for prime properties that generate higher fees.
In 2022, Ascott recorded S$258 million in earnings. Fee revenue from the lodging business increased by 36 per cent year on year compared to 2021, driven by signings and property openings.
Kevin Goh, chief executive officer of Ascott, said the hotel-in-residence model will help diversify the company’s revenue streams, intensify asset utilisation and optimise operational costs.
“The agility empowers Ascott to deploy its resources strategically, to generate higher returns for our investors and owners.”
The company has plans to continue expanding the range of properties it manages, which now include serviced apartments, hotels and co-living spaces ranging from economy to luxury scales.
It has also begun exploring the senior living segment, with the opening of the 100-unit Domitys Bangsar Kuala Lumpur in October 2022. The property, designed for independent seniors, offers facilities such as karaoke and wellness rooms, and organises activities like outings to local museums.
Ascott will soon manage more properties under The Crest Collection, its luxury brand. The Robertson House by The Crest Collection is slated to soft-open in Singapore in October, while The Cavendish London will undergo renovation from Q4 2024 to become a luxury hotel under The Crest Collection.
Amendment note: An earlier version of the story stated that Ascott’s number of units under management and franchise contracts was up 43 per cent from 10 years ago. It should be up from 43 per cent 10 years ago.
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