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CapitaLand Ascott Trust acquires three rental housing properties in Japan
CapitaLand Ascott Trust (CLAS) announced its acquisition of three freehold rental housing properties in Japan for a total of JPY4 billion. Two of the rental housing properties, Splendide Namba West and Pregio Esaka South, are in Osaka, while the third, Pre de Cort Nishikyogoku, is in Kyoto. On a FY 2024 pro forma basis, the acquisition of the three rental housing properties has a Distribution per Stapled Security (DPS) accretion of 0.3 percent. In line with CLAS’ portfolio reconstitution strategy, the acquisition was funded by proceeds from CLAS’ divestment of Citadines Karasuma-Gojo Kyoto in October 2024 and JPY-denominated debt. The expected net operating income (NOI) entry yield of the acquisition is four percent in FY 2025. This is significantly higher than the NOI exit yield of 0.4 percent from the divestment of Citadines Karasuma-Gojo Kyoto. The three operating assets will contribute to CLAS’ distributable income immediately. On an annualised basis, the combined distributable income is expected to more than fully replace the income from the divested Citadines Karasuma-Gojo Kyoto. CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte Ltd chief executive Serena Teo said: “The acquisition demonstrates CLAS’ ability to reconstitute our portfolio by redeploying divestment proceeds into higher-yielding assets, further enhancing CLAS’ portfolio and the quality of our earnings. Built about five years ago, the three rental housing properties are located in prime areas of key gateway cities with expanding economic opportunities. With average lease terms of about two years and an average occupancy of about 97 percent, the acquisition strengthens our stable income stream and portfolio resilience. Meanwhile, our earlier acquisition of two hotels in Tokyo and Kanazawa in January 2025 positions us to benefit from the growing travel demand. This combination of stable and growth income sources is a key strength for CLAS.” Surging forward in a key market Japan is one of CLAS’ key markets and, post-acquisition, its properties in the country will account for 17.7 percent of the company’s entire portfolio. This will essentially enable CLAS to better capitalise on the strong lodging demand in the country, whilst maintaining a geographically diverse portfolio. Teo said: “We remain focused on our three-pronged strategy: unlocking value through divestments, investing in yield-accretive opportunities, and uplifting portfolio quality through well-timed asset enhancement initiatives (AEIs), to deliver steady long-term returns to our Stapled Securityholders.” In total, CLAS will have 33 assets in Japan, comprising two serviced residences, four hotels, 26 rental housing properties, as well as a student accommodation property. Its properties in the living sector such as rental housing and student accommodation account for about 17 percent of CLAS’ total portfolio value. In the medium term, CLAS aims to increase its allocation towards living sector assets to about 25 to 30 percent, with the remaining 70 to 75 percent to serviced residences and hotels.
Ascott Expands Resort Portfolio with Multi-Typology Brand Strategy
The Ascott Limited (Ascott), the wholly owned lodging business unit of CapitaLand Investment (CLI), is scaling its global resort footprint through asset-light expansion. Riding on growing demand for experiential stays, Ascott now has around 50 properties in resort destinations in operation and under development worldwide, supported by 11 new signings in the past 10 months secured via management and franchise agreements. These represent about 5% of its global portfolio of over 1,000 properties, reflecting a strategic focus on the fast-growing leisure segment. This momentum is driven by Ascott's multi-typology brand strategy, which adapts well-loved brands such as Ascott, Citadines, lyf, Oakwood, Somerset, The Crest Collection and The Unlimited Collection for resort settings. This approach enables efficient scaling in high-potential destinations while fulfilling lifestyle aspirations of its growing Ascott Star Rewards membership and delivering brand-led solutions that drive long-term value for property owners. Capitalising on growing demand for experiential stays, Ascott now has around 50 properties in resort destinations in operation and under development worldwide, supported by 12 new signings in the past 10 months secured via management and franchise agreements. Among these is the upcoming Ascott Abov Patong Phuket Resort (pictured), which marks Ascott's debut in Phuket. Just 150 metres from the iconic Patong Beach, it features 254 rooms, comprehensive leisure facilities and event venues. Also part of the development is a 227-unit branded residence, Residences at Ascott Abov Patong Phuket. Recent signings across Asia and the Middle East reflect Ascott's strategic expansion into key leisure hotspots. These include iconic beach destinations such as Patong Beach in Phuket and Jimbaran Beach in Bali. Ascott is also entering Marjan Island, Ras Al Khaimah's premier man-made coral island known for its pristine beaches. In Vietnam, Ascott is growing its presence in Phu Quoc, voted the world's second-best island[2], and Nha Trang, an established coastal city often dubbed the "Riviera of the South China Sea". The company is also capitalising on emerging opportunities in fast-growing destinations such as Cam Ranh, an up-and-coming aviation and leisure hub, and Sam Son, a rising domestic and regional tourism hotspot. Additionally, Ascott is entering Labuan Bajo, Indonesia — the gateway to Komodo National Park, a UNESCO World Heritage site. In South Korea, it is tapping demand in Gangneung, the leading east coast destination and host of the 2018 Winter Olympics. Ascott's push into resort destinations capitalises on robust industry tailwinds. Global leisure travel spend is projected to triple to US$15 trillion by 2040, fuelled by increasing demand from the burgeoning middle class in emerging markets such as China, India and Saudi Arabia, the rise of experience-led younger travellers, and surging domestic and regional tourism1. Notably, over 70% of travellers from emerging markets now combine business and leisure trips, highlighting the growing importance of bleisure travel1. Within this broader trend, the global resort segment – valued at US$300.03 billion in 2023 – is forecast to reach US$945.38 billion by 2030, growing at 18.2% CAGR, driven by rising disposable incomes, increased international travel, and preference for destination-led, experience-rich stays [3]. Serena Lim, Chief Growth Officer, Ascott, said: "As leisure travel continues to outpace global tourism growth[4], we are seeing strong momentum from property owners eager to grow with us in the resort space. Owners are drawn to our flex-hybrid model, which optimises returns and mitigates risk in dynamic leisure markets by serving both short and extended stays within a single operational framework. Complemented by our multi-typology brand strategy, we align the right brand and format to each resort setting, enabling differentiated, locally attuned guest experiences while staying responsive to evolving travel trends. Backed by a loyal and expanding member base seeking elevated leisure experiences, Ascott is well-positioned to deliver long-term value through exceptional resort stays, creating results for owners, delight for guests and impact across the markets we serve." Tan Bee Leng, Chief Commercial Officer, Ascott, said: "Resorts represent a powerful extension of Ascott's brand promise to let guests 'Stay Your Way', unlocking a world of leisure-led experiences that elevate our Ascott Star Rewards (ASR) programme to new heights. From sun-drenched beachfront villas and serene mountain retreats to château stays and immersive wellness escapes, each resort adds lifestyle richness to the loyalty journey, deepening member engagement and incentivising cross-destination travel. At the same time, a growing base of loyal ASR members fuels demand for these differentiated resort offerings globally — accelerating our resort expansion strategy with data-backed insights and a ready community of experience-driven travellers. Ascott's flex-hybrid model and multi-typology brand approach allow us to scale trusted urban brands into resort destinations with local authenticity and operational excellence, creating a virtuous cycle that benefits guests, members and property owners alike." Expanding Reach Across Leisure Hotspots Ascott is expanding into sought-after resort destinations with new property signings that deliver diverse, experiential stays. In Thailand, Ascott Abov Patong Phuket Resort will feature 254 rooms and comprehensive leisure facilities including all-day dining, a swimming pool, rooftop bar, pool bar, spa, gym, kids' club and event spaces. Located just 150 metres from iconic Patong Beach and surrounded by tourist attractions, the resort enjoys a prime position in Thailand's leading leisure destination, known for its strong year-round demand and diverse visitor base. Guided by the brand's understated luxury philosophy, Ascott Abov Patong Phuket Resort will showcase its "Fine Arts Inspired by Nature" concept, blending luxury, tranquility and local artistry in perfect harmony. The project also includes Residences at Ascott Abov Patong Phuket, a 227-unit branded residence, with completion targeted for 2027. Vietnam is a key focus of Ascott's resort portfolio expansion. Lasong Hotel & Villas Sam Son by The Unlimited Collection (pictured) in Thanh Hoa began operating in phases from April 2025, just six months after signing. Offering an immersive stay along one of Vietnam's most renowned beaches, the resort features boutique rooms, private villas, dining venues, a Korean jjimjilbang and event facilities including a grand ballroom. Ascott is also scaling its resort portfolio in Vietnam. Somerset Nha Trang, part of the landmark Libera Nha Trang development, will bring the brand's trusted family-friendly resort living to one of Vietnam's most popular beach destinations. Meanwhile, Citadines Selavia Phu Quoc will anchor a mixed-use precinct on the island's popular southwest coast. Opening in 2027, this 369-unit beachfront development will offer premium amenities including a spa with onsen facilities, all-day dining and expansive event spaces. In Cam Ranh, along Long Beach, Ascott will debut the HARRIS brand in Vietnam with the 693-unit HARRIS Resort Cam Ranh. Designed as an all-in-one resort destination, it will feature specialty dining, a beach club, water park and recreational facilities. Business travellers will also be catered for with a ballroom and dedicated meeting spaces. Slated to open in 2026, HARRIS Resort Cam Ranh marks the brand's continued expansion beyond Indonesia into high-potential Southeast Asian markets. Separately, Lasong Hotel & Villas Sam Son by The Unlimited Collection in Thanh Hoa began opening in phases in April 2025, less than six months after signing. The resort offers a distinctive retreat on one of Vietnam's most storied beaches, blending boutique hotel rooms, private villas, wellness amenities – including a Korean jjimjilbang and dedicated spa – a grand ballroom and culturally inspired dining. As the second property under The Unlimited Collection in Vietnam after Anmira Resort & Spa Hoi An by The Unlimited Collection, it underscores Ascott's commitment to culturally immersive experiences in fast-growing leisure destinations. In Indonesia, the 120-key lyf Labuan Bajo marks Ascott's debut in one of the country's most sought-after resort destinations, a rising eco-tourism hub and gateway to UNESCO-listed Komodo National Park. Opening in 2027, the property will introduce lyf's experience-led social living concept to Labuan Bajo, featuring vibrant communal spaces, coworking zones and curated local experiences designed to foster connection and exploration among next-generation travellers. The upcoming 57-unit all-villa Oakwood Jimbaran Villas and Residences Bali (pictured) strengthens Ascott's established Bali portfolio, providing direct access to Jimbaran Beach, one of Bali's most coveted destinations known for its pristine coastline, world-class seafood restaurants and breathtaking sunset views. Three other resort developments across Indonesia are also slated to open from 2026 to 2028. In Bali, the 57-unit Oakwood Jimbaran Villas and Residences Bali will provide direct access to the renowned shores of Jimbaran Beach, while the 366-unit Oakwood Premier Berawa Beach Bali will offer upscale beachfront living in the trendsetting district of Canggu. In Sanur, the 180-unit Oakwood Sanur Bali will be positioned within the Special Economic Zone, adjacent to the highly anticipated Bali International Hospital – a future hub for medical tourism. Featuring ocean views and convenient beach access alongside diverse accommodation choices, the property will blend coastal charm with wellness-focused amenities, complemented by recreational facilities, event spaces and destination dining experiences. In South Korea, Ascott is introducing its Oakwood brand to Lagoon Town, a landmark resort complex under development in Gangneung's Cultural Olympic Special Zone. Overlooking both Gyeongpo Lake and Gyeongpo Beach, the 500-key property will meet rising demand for leisure-led extended stays on Korea's scenic east coast. Located just five minutes from Gangneung Station and two hours from Seoul via KTX, the property is positioned to become a key coastal retreat for domestic and international travellers. In the UAE, Al Mahra Resort by The Crest Collection is set to open in 2027 on Marjan Island, Ras Al Khaimah's flagship beachfront leisure destination. The resort will feature 539 uniquely designed rooms and luxury suites with a comprehensive selection of amenities including all-day dining, specialty restaurants, bars, a spa, swimming pool, gym, kids' playroom, club lounge and flexible event spaces – making it a standout destination for upscale coastal getaways. These additions expand Ascott's growing resort portfolio, which includes ski retreat Oakwood Suites Chongli in China's premier winter sports hub, the all-villa Oakwood Ha Long near Vietnam's UNESCO-listed Ha Long Bay, Somerset Pattaya on Thailand's vibrant coast and Château Belmont Tours by The Crest Collection in France's Loire Valley. Ascott will also debut its Preference brand in the Philippines with Balai Dajao by Preference in Siargao island, the country's celebrated surfing capital. The 100-unit property featuring suites and villas is expected to operate from late 2027. With over 20 new properties in resort destinations set to open over the next three years, Ascott continues strengthening its lifestyle hospitality presence in key leisure markets worldwide.
CapitaLand’s Ascott signs landmark agreement in the Johor-Singapore Special Economic Zone
CapitaLand Investment’s hospitality arm The Ascott Limited (Ascott) was appointed by Coronade Properties Sdn Bhd (Coronade Properties) to manage the hotel component of the Coronation Square integrated development. The hotel management agreement between Ascott and Coronade Properties was signed today, 8th August, in Singapore, witnessed by Johor’s Menteri Besar Onn Hafiz bin Ghazi and Singapore’s minister of trade and industry as well as national development Alvin Tan. Their presence underscored the shared commitment of Johor and Singapore to deepen cross-border collaboration through enhanced infrastructure, investment and mobility. Coronade Properties’ director of corporate relations Datin Paduka Alinah Ahmad said: “We are proud to partner with Ascott on this landmark hotel, which will serve as a premier gateway for both business and leisure travellers. As Coronation Square develops into a vibrant destination, this partnership marks an exciting new chapter in Johor’s hospitality and real estate landscape. Building on this momentum, Coronade Properties is planning the launch of a new residential project, Coronade Twins, in Q4-2025. Residential apartments at Coronation Square will feature hotel-grade concierge services as a value-add for homebuyers.” Ascott’s chief strategy officer and managing director for Southeast Asia Wong Kar Ling added: “With the JS-SEZ catalysing greater cross-border investments and the RTS enhancing connectivity, Johor Bahru is entering a dynamic new phase of growth. Ascott Coronation Square Johor Bahru allows us to introduce our namesake Ascott brand to this market, positioning us at the heart of this transformation to capture rising demand from corporate, long-stay and leisure segments. This reinforces our long-term commitment to Malaysia's hospitality landscape and cross-border prosperity.” Wong added that Ascott’s presence in Malaysia continues to deepen, with over 40 properties in operation and in the pipeline. These span diverse brands including Ascott, Citadines, lyf, Oakwood, Somerset, The Crest Collection, The Unlimited Collection, Fox and Harris, catering to a wide range of guests and market segments. She concluded by saying: "From key urban centres like Kuala Lumpur and Johor Bahru to fast-growing leisure destinations such as Penang and Sabah, Malaysia remains a core growth market for us. We are committed to expanding our footprint with high-quality developments that meet the evolving expectations of discerning travellers visiting the country." A strategic location The development is strategically located in the Ibrahim International Business District (IIBD) within the Johor-Singapore Special Economic Zone (JS-SEZ) and will be directly connected to the upcoming Rapid Transit System (RTS) Link. Operating under Ascott’s flagship namesake brand, Ascott Coronation Square Johor Bahru will serve as a flagship hospitality development in the JS-SEZ, catering to rising demand from increased cross-border business, tourism and investment activities. The collaboration represents the first major hospitality partnership since the landmark JS-SEZ agreement between Malaysia and Singapore in January 2025, highlighting the zone’s emerging appeal for cross-border business ventures. The project also marks the debut of the premier Ascott brand in Johor Bahru and will be the sixth Ascott-branded property in Malaysia. The other five Ascott-branded properties are in Kuala Lumpur and Penang. This represents a strategic milestone in Ascott's continued expansion in Malaysia, where it now manages a portfolio of over 40 properties, both operating and in the pipeline. Raising the bar for hospitality excellence Ascott Coronation Square Johor Bahru will be a five-star hotel with 207 rooms housed within Tower 1 of Coronation Square, strategically located in the IIBD of the JS-SEZ. Scheduled to open in the second half of 2029, the hotel will cater to leisure, business and long-stay travellers with comprehensive facilities including an all-day dining restaurant, swimming pool, fitness centre, residents’ lounge and meeting rooms. Designed as a sanctuary of fine living, the property will showcase Ascott's signature touches through timeless interiors, curated lobby art installations and elevated service by the Ascott Artisan. Guests can enjoy curated experiences including Themed Suites and the Ascott Soirée, a cultural initiative celebrating the arts and connecting guests to their destination. Currently under development, Coronation Square is a RM5 billion integrated development by Coronade Properties and the first project to kick-start the 250-acre IIBD, positioned as a catalyst to transform Johor Bahru into a world-class metropolis. The 9.6-acre development comprises hotel, medical, office and residential components, as well as the 1.2 million-square-foot Coronation Square Mall. Construction of the mall will begin in 2026, with completion targeted for 2030. Coronation Square boasts direct connectivity to the upcoming RTS station at Bukit Chagar and the Customs, Immigration and Quarantine facilities via a 210-metre elevated walkway, enhancing seamless cross-border accessibility. Supporting this connectivity, the project features basement parking with about 4,500 parking bays, including some 700 bays reserved for RTS users.
CapitaLand Ascott Trust achieves 6 percent increase in gross profit
CapitaLand Ascott Trust (CLAS) achieved an increase of six percent in gross profit year-on-year, reaching S$182.5 million for H1-2025. Revenue was also up three percent y-o-y to S$398.5 million. The higher gross profit and revenue were mainly attributed to stronger operating performance, CLAS’ portfolio reconstitution strategy and asset enhancement initiatives (AEI). On a same-store basis, both gross profit and revenue grew four percent y-o-y in the first half of this year. CLAS’ revenue per available unit (REVPAU) for H1-2025 rose by three percent to S$150, compared to H1-2024. CLAS’ REVPAU for Q2-2025 also saw a three percent increase y-o-y to S$159 on the back of higher average occupancy rates, while most of CLAS’ key markets registered REVPAU growth. Driven by the operating performance of the portfolio, CLAS’ total core distribution for the first six months of this year increased by one percent y-o-y to S$91.6 million, while total distribution remained at S$96.5 million. Core Distribution per Stapled Security and DPS remained relatively stable at 2.40 cents and 2.53 cents respectively. Given these developments, CLAS is committed to distributing stable core distributions, through enhancing core distribution income from operating performance and distributing non-periodic and/or divestment gains when appropriate. CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte Ltd chair Lui Chong Chee said: “CLAS continues to deliver consistent growth, achieving higher revenue and gross profit in H1-2025. Despite global uncertainties, CLAS remains resilient, supported by our diversified portfolio across geographies, lodging asset classes and contract types. In 1H 2025, 66 percent of CLAS’ gross profit was from stable income sources, of which 16 percent of the gross profit was contributed by CLAS’ assets in the living sector. The remaining 34 percent of the gross profit came from growth income sources. We continue to seek opportunities to reconstitute and enhance our portfolio. By divesting properties at the optimal stage of their life cycle, we are able to reinvest the proceeds into higher-yielding acquisitions, AEIs or other value-accretive uses to deliver stable and sustainable returns to Stapled Securityholders.” Continuing growth Meanwhile, CEO Serena Teo said: “As part of our proactive portfolio management strategy, we have planned to undertake three additional AEIs in 2025 and 2026, bringing the total number of AEIs to five. One of the additional AEIs, for ibis Ambassador Seoul Insadong, was successfully completed in 1H 2025. The total capital expenditure to upgrade the remaining four properties in the pipeline is approximately S$205 million. These AEIs will enhance the value proposition of our properties located in key gateway cities, enabling them to better capture lodging demand and uplift both profitability and asset value.” Teo added that these AEIs complement CLAs’ growth strategy through portfolio reconstitution. In January 2025, CLAS redeployed divestment proceeds to acquire two freehold limited-service hotels in Japan, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, for a total of S$178.5 million. This acquisition has a DPS accretion of 1.6 percent, and will more than replace the income from the company’s four previously divested properties in Japan. Teo concluded with: “We continue to strengthen the quality and earnings resilience of CLAS’ portfolio, positioning us for future growth.”
Bacolod hotel alliance to boost city’s status as MICE destination
Hotels and resorts in the highly-urbanised Central Philippine city of Bacolod recently formed an alliance to help strengthen its position as one of the country’s leading destinations for meetings, incentives, conferences, and exhibitions (MICE). According to city chief tourism operations officer Maria Teresa Manalili, the formation of the Bacolod Hotel Alliance signifies a milestone in the city’s mission to build a more unified and dynamic tourism sector. In a statement released on Friday, 2nd May, Manalili declared: “By strengthening partnerships among accommodation establishments and fostering collaboration across all sectors, we are laying the groundwork for a strong MICE alliance that will position Bacolod as a top destination for business and leisure,” she said in a statement on Friday. Manalili added that uniting the hotels and resorts would strengthen the hotel and tourism industry and enhance coordination in preparation for the city’s expanding tourism initiatives, particularly in the MICE sector. The recently elected officers of the Bacolod Hotel Alliance are Sherwin Lucas (Park Inn by Radisson), president; John Victor Go (Roy’s Hotel and Convention Center), vice president; Catherine Gonzalez (Acacia Hotel), secretary; Kim Joseph Guimba (Seda Capitol Central), treasurer; Allen Jimenez (Citadines Bacolod), Regina Guanco (Sugarland Hotel), and Teena Locsin-Javellana (L’Fisher Hotel), board members. A city with great potential for MICE Data from the Bacolod City Tourism Office showed there are at least 26 hotels and eight resorts in the city, and along with 48 Mabuhay accommodations, have a total of 3,859 available rooms. Mabuhay accommodations include tourist inns, pension houses, motels, bed and breakfasts, vacation homes, hostels, guest houses, and similar establishments. Manalili said: “We will convene the Mabuhay accommodations group next to foster camaraderie, collaboration, and eventually form their own alliance.” She pointed out that overnight tourist arrivals in the city rose steadily over the past three years, recovering from the pandemic lows in 2020 and 2021. In 2024, Bacolod recorded a 6.72 percent increase in overnight tourist arrivals, accommodating 833,345 travelers compared to only 780,916 in 2023.
The Ascott Limited to double portfolio in India
CapitaLand Investment’s The Ascott Limited plans to double its portfolio in India to 12,000 units by 2028, up from the 5,500 units it had as of end-2024. Ascott CEO Kevin Goh announced this ambitious goal at the 20th Hotel Investment Conference – South Asia (HICSA) in Mumbai. At the event, Goh spoke on the topic of Redefining Global Living, expounding on how global living today has become a reflection of how people live, work, and travel seamlessly across borders. On the back of favourable growth prospects in the Indian hospitality market, Ascott is riding on a strong momentum in the first quarter of 2025 with three signings in Goa, Lucknow and Thanjavur. These signings collectively added 600 units to Ascott’s India portfolio, which now totals about 6,100 units across 22 properties, including both operating and in the pipeline. An important market Goh explained that India is an important inbound and outbound market for Ascott, with strong growth potential as it continues to evolve into one of the world's largest economies. He said: “With a rapidly growing middle class, increasing disposable incomes and improving infrastructure, India’s dynamic economic landscape is unlocking immense opportunities for its travel and hospitality sectors. Despite promising prospects, the supply of branded hotel rooms in India remains limited, creating a significant demand-supply gap that opens up tremendous potential for Ascott to contribute to the country’s hospitality growth.” Goh further added that, as diverse demand drivers fuel India’s hospitality sector, Ascott is well-positioned to capitalise on this growth with Ascott’s flex-hybrid model that seamlessly adapts to shifting demand across both transient and extended stays. This competitive edge is reinforced by Ascott’s multi-typology brand strategy, enabling us to serve every type of guest with a diverse portfolio ranging from select- to full-service operations. He said: “Backed by the in-market expertise of our local team in India, we are confident in delivering exceptional value to our owners while enhancing the guest experience. As we strengthen our brand presence in India, we believe the country will become a key source market for Ascott’s properties worldwide.” A dual focus For his part, Ascott’s chief operating officer for EMEA, South Asia, and China Lee Ngor Houai declared that, moving forward, the company’s growth strategy in India will be driven by a dual focus on geographic and brand expansion. Lee explained: “Currently, 85 percent of Ascott’s operating portfolio in India are concentrated in Tier-1 cities such as Bangalore, Chennai and Hyderabad. We will continue to strengthen our presence in these high-performing Tier-1 cities, while also expanding our focus on the fast-growing Tier-2 and Tier-3 cities. This strategy is driven by growing interest in India’s lesser-travelled destinations and the significant under-penetration of branded hotels in these cities.” The company is also growing brands it already has in India; namely Ascott, Citadines, Oakwood, and Somerset. Ascott also looks forward to launching more of its multi-typology brands into the Indian market. Lee said: “We see strong potential in introducing lyf, our experience-led social living brand, to tap into the rise of India’s urban millennial and Gen Z workforce, along with the growing digital nomad trend. As demand for flexible, community-focused stays grows, lyf aligns perfectly with India’s next-gen travellers. Furthermore, our collection brands, The Unlimited Collection and The Crest Collection, are poised to meet the rising demand for immersive cultural and heritage experiences in India, turning stays into unforgettable journeys.” Leveraging opportunities to connect with industry partners and owners, Ascott’s development team was present at the Hotel Investment Conference-South Asia (HICSA) in Mumbai this week to showcase the group’s portfolio of brands while expanding on business opportunities.
CapitaLand Ascott Trust makes it into S&P Global Sustainability Yearbook 2025
CapitaLand Ascott Trust (CLAS) was included in the S&P Global Sustainability Yearbook 2025, making its debut in the prestigious index as the only lodging trust included from the Asia Pacific. CLAS is also the only Singapore-listed trust under the Equity Real Estate Investment Trusts category. The Trust also achieved Industry Mover status in the rankings, as it was recognised for accomplishing the strongest improvement in its industry. Out of over 7,690 global companies assessed, only 780 companies have been recognised in the S&P Global Sustainability Yearbook for 2025. Inclusion in the S&P Global Sustainability Yearbook is based on the S&P Global Corporate Sustainability Assessment (CSA). The CSA measures a company’s performance on and management of material environmental, social and governance (ESG) risks, opportunities and impacts, making the link between sustainability and business strategies. Operating with sustainability at its heart CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte Ltd CEO Serena Teo remarked that sustainability lies at the core of all of their initiatives. She said: “As CLAS continues to expand as the largest lodging trust in Asia Pacific, we endeavour to grow responsibly. We integrate sustainability in every stage from investment to design, development and operations. We have established systems and processes to ensure that we are on track to achieving our rigorous sustainability targets. CLAS is also one of the few listed trusts in Singapore to publish a sustainability report that is externally assured to give our investors and stakeholders confidence in the quality of our data and reporting. We remain committed to enhancing our ESG efforts as we deliver stable returns to our Stapled Securityholders.” Teo added that guests staying at Ascott properties are also keen on sustainability, thanks largely to visible measures actively being implemented. She said: “We have greened over 50 percent of our global portfolio and CLAS remains on track to green 100 percent of our portfolio by 2030. We continue to partner our operators and lessees to green our operations. In addition, our asset enhancement initiatives (AEI) not only uplift the value and profitability of the properties but also improve the energy and water efficiency of these properties.” Six of the eight properties in CLAS’ AEI pipeline are already green certified; the rest will undergo the certification process over the next few years.
Branded residences could drive growth in Philippine tourism and hospitality sectors
C9 Hotelworks and Delivering Asia recently held a special tourism and hospitality event in Manila wherein the possibility of branded residences boosting both tourism and hospitality was discussed. This forum was attended by over 100 industry leaders and featured speakers like Lee Lin, regional director for the Asia Pacific for Nobu Hospitality, and Tajara Leisure and Hospitality Group president and CEO Cyndy Tan Jarabata. C9 Hotelworks managing director Bill Barnett remarked: “We believe that Manila has all the potential to evolve into a global playground city. Its regional accessibility, diverse entertainment options, and rich lifestyle offerings make it a prime candidate for the growing demand in luxury residences.” The integration of branded residences into the Philippines’ tourism and hospitality landscape is already making waves, with international hospitality groups such as The Ascott Limited spearheading the development of luxury residential offerings. With luxury real estate markets thriving in key destinations across the region, the Philippines stands poised to benefit from this growth. The rise of branded residences, combined with world-class hotel and resort offerings, will further elevate the country's status as a prime location for both international travelers and investors. As tourism continues to drive growth in the country, the fusion of branded residences and hospitality sets the stage for the Philippines to become an even more compelling choice for travelers and investors, positioning it as one of the most exciting destinations in Asia for the coming decades. Changing the game in playground cities World capitals like Manila are increasingly becoming “playground cities,” following in the footsteps of other cosmopolitan hubs such as Bangkok, Miami, and Dubai. These cities have successfully combined luxury real estate with the region’s vibrant entertainment, sports, gaming, and lifestyle offerings. The Ascott, in particular, has been a pioneer in branded residences in the Philippines for over two decades and is confident that these properties will cater to an increasing demand for high-end, serviced living spaces. Saowarin Chanprakaisi, The Ascott Limited’s vice-president for business development, said: “We are fully committed to the Philippines in the long term. Our brands, including Somerset, Citadines, and now Oakwood, bring international expertise and world-class services that align perfectly with the expectations of buyers looking for top-tier branded residences. As the market matures, these residences will add a unique dimension to the country’s growing tourism and hospitality sectors.”
CapitaLand Ascott Trust to divest Somerset Olympic Tower Tianjin
CapitaLand Ascott Trust (CLAS) entered into an agreement to divest Somerset Olympic Tower Tianjin in China to an unrelated third party. The 185-unit property will be divested at above book value, unlocking gains for CLAS’ Stapled Securityholders. The transaction, subject to customary conditions precedent, is expected to be completed in Q2-2025. Somerset Olympic Tower Tianjin, which opened in 1998, is located in Heping District. CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte Ltd chief executive Serena Teo said: “We continually reconstitute CLAS’ portfolio by divesting mature properties such as Somerset Olympic Tower Tianjin and redeploying the proceeds towards more optimal uses. In the first half of 2024, CLAS’ properties in China contributed 1.4 percent to our total gross profit. The divestment of Somerset Olympic Tower Tianjin will have minimal impact on our gross profit. Post divestment, we will have four properties in China. With CLAS’ strong financial position, we stand ready to capture opportunities to deliver accretive growth for our Stapled Securityholders.” Strengthening its corporate portfolio via portfolio reconstitution strategy Prior to Somerset Olympic Tower Tianjin, CLAS has divested a total of close to S$400 million in assets year to date. The properties were divested at a premium to book value, unlocking about S$54 million in gains. CLAS also announced on 1 October 2024 that it will deploy proceeds from the divestment of Citadines Mount Sophia Singapore into the proposed acquisition of lyf Funan Singapore at an entry earnings before interest, taxes, depreciation and amortisation (EBITDA) yield of 4.7 percent, delivering accretion to Stapled Securityholders. Citadines Mount Sophia Singapore was divested in March 2024 at an exit yield of 3.2 percent. Other acquisitions include a rental housing property in Fukuoka, Japan and the remaining 10 percent stake in Standard at Columbia, a student accommodation property in the United States of America in the first half of this year. CLASalso recently completed the asset enhancement initiative (AEI) for Citadines Holborn-Covent Garden London. Year to date, CLAS has completed AEIs for five of its properties. CLAS has three properties in its AEI pipeline to be completed between Q4-2024 and 2026. These initiatives, when completed, are expected to enhance the quality of CLAS’ portfolio and uplift its distribution income.
CapitaLand Ascott Trust slated to acquire lyf Funan Singapore
CapitaLand Ascott Trust (CLAS) entered an agreement with the Ascott Serviced Residence Global Fund (ASRGF) for the acquisition of lyf Funan Singapore at an agreed property value of S$263 million. CLAS’ sponsor, The Ascott Limited (Ascott), holds a 50 percent stake in ASRGF. This acquisition is in line with CLAS’ portfolio reconstitution strategy, as the yield-accretive purchase stands to enhance the quality of CLAS’ portfolio and sustainability of returns to its stapled securityholders. At the same time, the impending acquisition will increase CLAS’ total distribution by S$3.5 million, which translates to a Distribution per Stapled Security (DPS) accretion of 1.5%. The earnings before interest, taxes, depreciation and amortisation (EBITDA) yield of the proposed acquisition is 4.7 percent on a pro forma basis for FY 2023. The purchase consideration of S$146.4 million will be largely funded by the proceeds from the divestment of Citadines Mount Sophia Singapore which was completed in March 2024. CLAS’ gearing is expected to remain under 40 percent after the proposed acquisition. Upon completion of the proposed acquisition, CLAS will enter into a master lease with Ascott for lyf Funan Singapore. The proposed acquisition and entry into the master lease are subject to approval from Stapled Securityholders at the Extraordinary General Meeting scheduled in November 2024. The transaction is targeted to be completed in Q4-2024. Part of portfolio reconstruction Serena Teo, CEO of CLAS’ parent firms CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte Ltd, said: “The proposed acquisition of lyf Funan Singapore is exemplary of our portfolio reconstitution strategy to recycle capital into higher yielding assets. Citadines Mount Sophia Singapore was divested at an exit EBITDA yield of about 3.2 percent, while the entry EBITDA yield for the proposed acquisition of lyf Funan Singapore is 150 basis points higher, delivering accretion to CLAS’ DPS. “The DPS-accretive acquisition of lyf Funan Singapore will increase our presence in Singapore, our home ground. Being a key gateway city, growth in demand in the Singapore hospitality market is expected to outpace supply as global flight connectivity and capacity increase. Additionally, income contribution from Singapore will balance the contribution from CLAS’ overseas markets.” Teo added that lyf Funan Singapore outperformed other comparable properties in the submarket in the first half of this year, achieving a strong average occupancy rate of more than 80 percent. The other lyf-branded property in the company’s portfolio, lyf one-north Singapore is also seeing robust demand with a similar average occupancy rate. The addition of another prime lyf property into the company’s portfolio puts it in a good position for further growth as travel continues to recover.
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