Ascott has formed a strategic alliance with one of Indonesia’s top property developers – Ciputra Development Group (Ciputra) to manage serviced residences in Indonesia and China within the next five years. The 253-unit Citadines Sudirman Jakarta, the first property under the alliance, will open in 2021.
The alliance was inked today at the opening ceremony of Ascott Sudirman Jakarta, a property which Ascott acquired from Ciputra in 2017 Since it first partnered Ciputra in 1996 for Somerset Grand Citra Jakarta, which is jointly owned with Ascott Residence Trust, Ascott has also acquired Ascott Kuningan Jakarta from Ciputra in 2014.
In addition to Citadines Sudirman Jakarta, the newly opened Ascott Sudirman Jakarta and Ascott Kuningan are all located within Ciputra World – a mixed-use multiplex development in Jakarta’s Golden Triangle Central Business District.
“Accelerated access to quality project pipeline”
Kevin Goh, Ascott’s chief executive officer, said: “Forming strategic cooperation with leading industry players continues to be a key growth strategy for Ascott, as it provides us with accelerated access to quality project pipeline.
“Having strong reputable partners speaks volume of the value Ascott brings, through our international network, strong brand reputation and dominant foothold in many key markets around the world. We will continue to work with our strategic partners to not only expand within their markets but also to extend their reach overseas.”
This strategic alliance with Ciputra follows Ascott’s recent partnership with TAUZIA Hotel Management. With these latest developments, Ascott achieved a record nine-fold increase in properties in Indonesia year-on-year. Its portfolio now stands at more than 130 serviced residences and business hotels with close to 22,000 units across 39 cities in Indonesia.
Goh added: “Through our collaboration with strategic partners, Ascott has added the biggest number of properties in Indonesia in a year. With an expanded product offering, we expect to pick up pace in our growth in the country. Indonesia is Southeast Asia’s largest economy, where we see huge potential for us to expand.
“The country is witnessing increasing economic activities as well as infrastructure developments to improve travel connectivity, driving demand for quality accommodation. We will continue to bolster Ascott’s position as the largest international lodging player in Indonesia through investment, strategic alliances, management contracts and franchises as we work towards our global target of 160,000 units by 2023.”
Ervin Yeo, Ascott’s regional general manager for Singapore, Malaysia and Indonesia, added: “We have just opened Ascott Sudirman Jakarta, a second serviced residence within the Ciputra World mega development due to high demand. Our existing Ascott Kuningan Jakarta in Ciputra World 1 has been performing well with consistently strong occupancies since it opened in 2014.
“Ascott will open nine serviced residences with more than 1,600 units in Indonesia over the next few years, including our first properties in Bandung, Somerset Asia Afrika Bandung and Citadines Kings Bandung. In addition, through our partnership with TAUZIA, our pipeline will include another 60 hotels with more than 8,700 units across Indonesia. With our scale and lodging network comprising a full suite of brands, Ascott is well positioned to meet the burgeoning demand from corporate and leisure travellers.”
Indonesia saw more than 14 million overseas visitors in 2017, an increase of over two million from 2016 3. Business and leisure travel spending is expected to rise respectively by 7.1% and 5.4% per year to 20284.