The Ascott looks to boost Philippine presence
THE ASCOTT Ltd. is looking to develop as many as 25 properties across the country until 2020, as it brings two more serviced residence brands catering to the younger generation and the high-end market.
“I feel strongly about this country, with its economic gains and push for tourism,” Arthur Gindap, regional general manager of The Ascott for the Philippines and Thailand, said in a media briefing in Makati City on Monday.
“I believe we can do 20 to 25 properties here in the Philippines,” he added.
The Singapore- based owner and operator of international serviced residences currently has five properties in full operation and six under development in the Philippines. These are managed under the Ascott, Citadines and Somerset brands.
The five operational properties are Somerset Millennium Makati, Ascott Makati, Citadines Salcedo Makati, Somerset Olympia Makati and Ascott Bonifacio Global City Manila.
The Ascott is investing $ 25 million to renovate Ascott Makati in less than two years. It targets to complete renovation work at the first tower within the month and at the second tower within the following year.
The company will open within the year two more properties, namely Somerset Alabang Manila on July 26 and Citadines Millennium Ortigas Manila in the fourth quarter. Its first foray outside Metro Manila — Citadines Cebu City — will open next in 2019.
The Ascott is also entering the Manila area with Citadines Manila Bay. The company has yet to unveil the two other properties under development.
The 11 properties will offer 2,346 units in studio, one, two and three- bedroom configurations. With the development of nine to 14 more properties, the company will have an inventory of about 5,000 units of serviced apartments.
“We are in discussions with 10 different organizations now in different locations,” Mr. Gindap said, noting the company can bring the Somerset and Citadines brands in the Fort, Somerset in Ortigas and Citadines in Quezon City.
The Ascott is considering at further expanding outside of Metro Manila, with Mr. Gindap citing Laguna, Batangas, Dumaguete and Davao among the company’s prospects.
At the same time, The Ascott will likely introduce The Crest and Lyf brands to the Philippines. The Crest is a collection of old buildings turned into serviced residences, while Lyf appeals to millennials.
“We really feel very strong and bullish on the Philippines. We’re in a great, perfect position being one of the earlier brands to come into the country,” Mr. Gindap noted.
The Ascott primarily serves as manager rather than owner of the properties in the Philippines unlike in other jurisdictions, where its parent CapitaLand, Inc. has established presence.
Asked whether such a business model arose from the foreign ownership restrictions in the Philippines, Mr. Gindap said: “CapitaLand just entered Indonesia. They will come here one day... but we’ll always need to have a strong local affiliate.”
The Ascott Ltd. is a unit of Singapore property group CapitaLand Ltd.