Ascott, the Singapore-based serviced apartment operator, has started the year strongly by securing contracts for another six properties in China.
The company has expanded its portfolio in Changsha, Shenzhen, Tianjin and Wuhan, while also entering two new markets, Handan and Xuzhou. The six new serviced residences add more than 1,200 keys to Ascott’s Chinese inventory.
Ascott has set itself a target of opening more than 30 properties worldwide in 2017, 16 of which will be in China.
“Ascott crossed the 50,000-unit milestone last year, and there will be no let-up in our efforts to build up Ascott’s global scale and accelerate our growth in 2017,” said Lee Chee Koon, Ascott’s CEO. “We clinched a record 10,000 units in 2016 and this is expected to contribute SG$25 million to SG$30 million (US$18-21m) of fee income to Ascott annually as the properties progressively open and stabilise.
“As we expand across our different brands to offer more accommodation choices and tailored experiences to our customers internationally, we are confident of achieving our global target of 80,000 units by 2020,” he added.
Lee added that Ascott will further diversify its business this year, in a bid to accelerate its expansion plans.
“In addition to management contracts, we will continue to seek acquisitions and franchises. We will also look at ways to strengthen our edge by transforming Ascott’s business, and forming strategic alliances with leading tech-players, property developers and capital partners,” he stated.
China is Ascott’s largest and fastest-growing market, with more than 17,300 units in 96 properties across 27 cities. Of the six new serviced residences, Citadines Sunhope e-Metro Shenzhen is slated to open this year, becoming Ascott’s largest property in China.
Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Jundu Tianjin are scheduled to open next year while Ascott Xiangjiang FFC Changsha, Citadines Yunlong Lake Xuzhou and Tujia Somerset Congtai Handan will commence operations from 2019.
Last year, Ascott opened 14 properties in China, adding over 2,000 units to its portfolio.