Ascott Secured 15,100 Units Across 72 Properties in 2021

(10 Jan 2022)  Ascott secured 15,100 units across 72 properties globally in 2021, the fifth consecutive year the company has achieved record growth in units organically despite COVID19 headwinds in the past two years.

Serviced residences continue to be Ascott’s mainstay, making up over 60% of the new signings while the number of hotels secured grew in 2021.

Ascott also closed 2021 with its highest-ever property openings, launching over 8,200 units in 40 properties across 25 cities and 10 countries - more than double the units opened in 2020.

The properties opened in 2021 includes Ascott’s first Adoor-branded rental housing property, Adoor Apartment Heda Hangzhou (Xiasha) and its first lyf-branded coliving property, lyf Mid-Town Hangzhou, in China.

Apartment at Somerset Sudirman Jakarta

Mr Kevin Goh, CapitaLand Investment’s Chief Executive Officer for Lodging, said, “In 2021, Ascott continued with our strong growth trajectory despite COVID19. Our record signings for the fifth consecutive year anchors Ascott’s market leading position as an international lodging operator. More than 80% of the new units secured in 2021 were under management and franchise contracts, in line with Ascott’s asset-light growth strategy. We also opened a record number of units in 2021, readying ourselves for the recovery of travel in 2022. The newly signed and opened properties will be a welcome boost to our recurring fee income, as we build on this momentum to meet our target of 160,000 units globally by 2023.”

Out of the 28 newly signed properties in the last five months, 11 properties are located in China. Ascott’s footprint in China is set to grow to more than 39,000 units in over 180 properties across more than 40 cities.

The company’s resilient base of long-stay corporate guests and the strong domestic leisure travel market have enabled Ascott’s serviced residences in China to achieve robust occupancy rates. In 2021, Ascott’s properties in China’s tier one cities Beijing, Guangzhou, Shanghai and Shenzhen achieved an average occupancy rate of over 80%, exceeding the market average of around 57% for the same period.

Ascott has also tapped on its expertise in the extended-stay segment to expand in the rental housing sector in China. In addition to opening its first rental housing property in the country, Adoor Apartment Heda Hangzhou (Xiasha), the company signed an Adoor-branded property in Xi’an in 2021 which is slated to open in 2023.

Ascott’s expansion in the rental housing sector leverages the growing demand from young and mobile professionals as well as returning students from abroad who are seeking to rent fully-furnished homes in the tier one and tier two cities on a longer-term basis in China. To date, Ascott has a total of 23 rental housing properties with over 3,200 units across 11 cities in China and Japan.

Through the 28 newly secured properties, Ascott will expand its geographical reach to new cities such as Boao and Sanya in China; as well as Padang Pariaman and Tasikmalaya in Indonesia.

The company has also entered Cameroon and Nigeria with the signing of its first property in the capital cities of Yaoundé and Lagos respectively.

In addition, Ascott will further strengthen its presence in Melbourne in Australia; Vienna in Austria; Guangzhou, Shanghai, Shenzhen, Tianjin, Wuhan, Wuxi, Xi’an and Zhuhai in China; Addis Ababa in Ethiopia; Bandung, Bekasi, Jakarta and Yogyakarta in Indonesia; Bangkok in Thailand; and Ho Chi Minh (Saigon) in Vietnam. The properties are slated to open between 2022 and 2026.