Serviced apartment operator Ascott has secured its ever franchise agreements to launch new properties in Laos and Bali.
The deals will see the Singapore-based company take over the running of the 116-unit Somerset Vientiane in the fourth quarter of 2014, and the 194-unit Citadines Kuta Beach Bali, which is scheduled to open in August this year.
Lee Chee Koon, Ascott’s CEO, said the franchises mark a “milestone” for the company.
“Franchise will be one of Ascott’s growth drivers for the future. It will allow us to build our scale rapidly in our existing markets and expand into new markets. Through the franchise agreements, we have added two more cities to our portfolio to reach 85 cities worldwide. Together with investments, management contracts and strategic alliances, franchise will bring us closer to achieving our target of 40,000 apartment units globally by 2015,” he said.
Ascott awarded the Vientiane franchise to a subsidiary of LCD Global Investments Ltd. Under the agreement, the serviced residence will be managed by Ascott for the first two years, during which time it will undergo a refurbishment, before transitioning to a franchise arrangement.
The property will offer 116 units, ranging from studios to two-bedroom apartments, plus a business centre, meeting room, tennis court, swimming pool, gym, sauna, jacuzzi, children’s playground, residents’ lounge and outdoor breakfast area.
The franchise for Citadines Kuta Beach Bali was awarded to PT Menara Permata Propertindo. This beachfront property will offer 194 studios, one- and two-bedroom apartments, along with a meeting room, rooftop swimming pool and bar, restaurant and launderette.
Ascott currently has a portfolio of more than 200 properties either operational or in the pipeline.