With rapid expansion, Ascott cements its footprint in South East Asia
Ascott, a Singapore-based hospitality firm which is a wholly-owned subsidiary of CapitaLand Investment (CLI), has announced 28 new signings year-to-date in Southeast Asia, adding over 3,400 units across its various brands in key destinations.
According to a press statement issued by Ascott, the signings in South East Asia account for more than half of Ascott’s global signings year-to-date and they will augment Ascott’s portfolio in the region to over 360 properties, both operational and in the pipeline, across 86 cities in nine countries, namely Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
The statement adds that this development reflects Ascott’s notable growth trajectory in Southeast Asia, with its portfolio increasing more than fivefold over the past decade, from 13,000 units in 2015 to more than 67,000 today. Additionally, the new signings will mark Ascott’s entry into new cities such as Purwakarta in Indonesia and Kulim in Malaysia.
Serena Lim
“Ascott’s flex-hybrid hotel-in-residence model is designed to meet every travel intent and accommodate various lengths of stay, appealing to property owners and developers across different asset classes and locations. This model has shown remarkable resilience during and after the pandemic, establishing itself as the preferred choice in the lodging industry. Our recent signings in Southeast Asia underscore the confidence property owners and developers have in us, reinforcing the dominance of Ascott’s flex-hybrid model in the region. By employing a ‘glocal’ approach, we effectively broaden our reach with Ascott’s global brands while also delving deeper into the local destinations through our regional offerings. This strategy enables us to capture not only inbound travel to Southeast Asia but also intraregional and domestic travel, further enhancing Ascott’s market performance,” says Serena Lim, Chief Growth Officer, Ascott.
“Ascott was recognised by hospitality research firm STR as one of the top three global hospitality companies with the largest active pipeline in the region at the Southeast Asian edition of the Asian Hotel Industry Conference & Exhibition 2024 in February. We will continue to build on this momentum to strengthen Ascott’s leadership in Southeast Asia by offering tailored solutions. Our deep cultural understanding and strong relationships with local owners provide us with a strategic advantage, fuelling our growth within the region and supporting our expansion in markets like the United Kingdom and Australia, where our Southeast Asia-based owners also hold valuable assets. Backed by our experienced global teams with extensive local expertise, we are well positioned to drive Ascott’s global expansion,” adds Lim.
Wong Kar Ling
“Ascott’s journey as a global hospitality leader began in Singapore 40 years ago, and our continued growth in Southeast Asia highlights the region’s importance as both our home base and a key strategic market. Contributing over 30 pc of our total revenue, this region remains central to Ascott’s global expansion strategy,” says Wong Kar Ling, Chief Strategy Officer and Managing Director of Southeast Asia, Ascott.
“Leveraging our experienced local teams and their deep market insights, along with a robust conversion framework that enhances our speed-to-market, we are on track to open 28 new properties in Southeast Asia this year, with 12 already completed. Our diverse new offerings, which include beach resorts, boutique heritage hotels, full-service city hotels and premium serviced residences, will cater to a wide range of guest preferences. We remain dedicated to strong execution and operational excellence to drive Ascott’s performance in Southeast Asia,” Wong adds.
The company says that its expansion comes amid strong growth prospects in Southeast Asia, as the region’s hotels market is expected to grow at a CAGR of 5.78 pc to achieve USD 16.41 billion in revenue by 20291. Destinations in Southeast Asia are likely to reach pre-pandemic levels in terms of tourism arrivals by the end of 2024.
In terms of the brands involved in the expansion in South East Asia, Ascott says that seven of its newly signed properties are under Oakwood, which continues its strong momentum as one of Ascott’s fastest growing global brands. Oakwood will open in Cambodia, and expand across several Indonesian cities with properties including Oakwood Serpong, Oakwood Yogyakarta, Oakwood Merdeka Bandung, Oakwood Palm Hill Semarang and Oakwood Slipi Jakarta. The seventh addition, an Oakwood Premier property in Singapore, will mark the first Oakwood Premier property in South East Asia since the brand’s refresh earlier this year.
Ascott is also adding properties in its home base in Singapore, pictured above
The new signings also feature four Somerset properties and three Citadines properties, highlighting the continued appeal of these global brands. Additionally, The Unlimited Collection has expanded with two new properties, both in Penang, Malaysia. The lyf brand has also made notable strides, adding two new properties in Singapore.
Meanwhile, the growth of Ascott’s regional brands in South East Asia is led by Harris with two signings, and one each for Preference and Fox.
The statement adds that in terms of geographical expansion, Ascott has significantly boosted its presence in Penang, Malaysia by signing nine new properties in 2024 to date. This is almost double the number of signings in 2023, increasing Ascott’s portfolio in the state by more than 20 pc. In Batam, Indonesia, Ascott has continued its positive signing momentum into 2024, doubling its portfolio in the city to 14 properties over the past two years.
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