Ascott, the Singapore-based serviced residence company, has reached the milestone of 12,000 apartment units in China.
The company, which is a subsidiary of real estate giant CapitaLand, recently secured contracts to manage five more properties comprising 1,000 apartment units in the cities of Yinchuan, Changsha, Shenyang and Xi’an. These take the company’s Chinese inventory to more than 12,000 serviced apartments, representing almost a third of its Asia Pacific total of 37,000 units.
“China is Ascott’s fastest growing market. As the world’s second largest economy, it continues to present tremendous opportunities. Urbanisation, increasing business activities and rising domestic affluence in key Chinese cities fuel strong demand for our serviced residences,” explained Ascott’s CEO, Lee Chee Koon.
“Since bringing Ascott from our home base in Singapore to China in 1998, we have grown to become China’s largest international serviced residence owner-operator, with 69 properties across 23 cities. This year alone, we have added some 2,600 apartment units in China. Having crossed our target of 12,000 apartment units ahead of 2015, we are now aiming at 20,000 units in China by 2020,” he added.
By this time, Ascott’s Chinese collection is expected to account for a quarter of its targeted global inventory of 80,000 units.
The latest five additions of Ascott’s portfolio demonstrate the company’s increasing focus on emerging second tier Chinese cities. The 200-unit Citadines Xingqing Yinchuan, 150-unit Somerset Xingqing Yinchuan and 164-unit Somerset Riverside Changsha will mark Ascott’s entry into two new markets, Yinchuan and Changsha – the respective capitals of the Ningxia region and Hunan province.
All three properties are due to open in 2018, and the Yinchuan properties mark the first time Citadines- and Somerset-branded serviced residences have been co-located in the same development.
Ascott has also signed its second property in Shenyang, the 330-unit Somerset Olympic Centre Shenyang, and its fifth property in Xi’an, the 156-unit Somerset Xindicheng Xi’an. These serviced residences will open in 2015 and 2016 respectively.
Celebrating its 30th anniversary in 2014, Ascott now operates 24,000 serviced apartment units in Asia Pacific, with a further 12,000 in the pipeline.