Phl among major markets in Ascott’s global push
Singaporebased serviced residence operator The Ascott Ltd. is ramping up its presence in the Philippines in line with its target to double its global portfolio to 160,000 units by 2023.
Ascott, a whollyowned subsidiary of CapitalLand, one of the biggest real estate firms in Asia, has forayed into new destinations that include Davao and Malacca in Malaysia, and deepens its exposure in emerging markets such as Cebu and Guangzhou in China.
“With the global economic upswing and international travel arrivals hitting a new high, we are confident of exceeding 80,000 units this year. We see immense potential to scale up to 160,000 units worldwide in the next five years. Besides accelerating our growth through management contracts, which currently make up 60 percent of our portfolio, we will continue to seek opportunities for strategic investments in strong operating businesses that will widen our customer reach and give us a competitive edge. We will also grow our franchise business, particularly through our Citadines and Quest brands, and form strategic alliances with leading companies that have a pipeline of properties for us to manage, ” said Kevin Goh, Ascott’s chief executive officer.
With its latest deals, Ascott has entered new attractive investment destinations - Malacca and Davao. Its foray into Davao will anchor Ascott in the Philippines’ third fastest-growing economy which also serves as the economic and tourism hub of Southern Philippines.
Ascott’s fifth property under its lyf brand will be in Cebu, the top investment destination in the Philippines outside Metro Manila.
“Almost half of our units under development worldwide are concentrated in Southeast Asia. The region has some of the world’s fastest expanding economies such as Vietnam and the Philippines. Southeast Asia’s booming workingage population, large-scale infrastructure projects, rising affluence, and favorable investment policies are attracting businesses, creating strong demand for quality accommodation. The ASEAN Economic Community will also generate more trade and employment opportunities, presenting huge growth potential for the hospitality industry,” Goh added.
With these new additions, Ascott currently has more than 160 properties with about 30,000 units under development worldwide. About 35 of these properties with more than 6,500 units are scheduled to open this year, half of which are in China, and a quarter in Southeast Asia. The rest are in countries such as Australia, France, India, Saudi Arabia, and the United Kingdom, including Ascott’s first property in Africa.