Ascott signs deals for 26 new properties

Ascott signs deals for 26 new properties
The properties, which will open in phases from 2019 to 2023, are mostly signed under management contracts
Published: 23 July 2019 - 11:15 a.m.
By: Mahak Manan

The Ascott Limited, has signed contracts to develop 26 properties with more than 6,000 units across 22 cities and 11 countries.

The properties, which will open in phases from 2019 to 2023, are mostly signed under management contracts, with three on franchise agreements.
The majority of the new properties are in the Asia-Pacific region, which CapitaLand indicated continues to see strong demand for lodging in tandem with lower cost of travel, improving travel infrastructure and middle-class demographics’ growing disposable income and aspiration to travel.

The deals are bringing Ascott into six new cities across Asia-Pacific, Central Asia and Africa, including Atyrau in Kazakhstan, Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea, as well as Cam Ranh and Hoi An in Vietnam.

The signings bring the number of contracts secured to date this year by Ascott to more than 40 properties with more than 8,000 units—an increase of more than 40% compared to the same period last year in terms of units. Ascott also opened 16 properties with more than 2,000 units, a 70% increase compared to 2018.

“We are fast-expanding Ascott’s global network of properties as we continue to pursue an asset-light business model to boost our recurring fee income,” said Ascott CEO Kevin Goh.

“For the first quarter this year, our operational units have contributed $59.7 million of fee income.For every 10,000 serviced-residence units signed, we are expecting to earn approximately US$25 million in fee income annually as the properties progressively open and stabilise. 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.”


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