Ascott to manage six more properties in China

The six new serviced residences include (clockwise from left) Ascott Xiangjiang FFC Changsha, Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Congtai Handan. Ascott plans to open more than 30 properties worldwide this year, of which 16 will b
The six new serviced residences include Ascott Xiangjiang FFC Changsha, Citadines Qingshan SCPG Centre Wuhan (above) and Tujia Somerset Congtai Handan. Ascott plans to open more than 30 properties worldwide this year, of which 16 will be in China.PHOTOS: THE ASCOTT
The six new serviced residences include (clockwise from left) Ascott Xiangjiang FFC Changsha, Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Congtai Handan. Ascott plans to open more than 30 properties worldwide this year, of which 16 will b
The six new serviced residences include Ascott Xiangjiang FFC Changsha, Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Congtai Handan (above). Ascott plans to open more than 30 properties worldwide this year, of which 16 will be in China.PHOTOS: THE ASCOTT

The Ascott, CapitaLand's wholly owned serviced residence business unit, has secured contracts to manage six properties with more than 1,200 apartment units in China.

The new properties cement Ascott's presence in Changsha, Shenzhen, Tianjin and Wuhan, while extending its footprint to two more cities - Handan and Xuzhou, the company said yesterday.

Ascott said it is also poised to boost its fee income by opening a record of more than 30 properties worldwide this year, of which 16 will be in China.

Mr Lee Chee Koon, Ascott's chief executive officer, said: "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. By expanding our network, the management fees we get over time will strengthen Ascott's earnings profile to deliver sustainable returns and drive return on equity.

"We clinched a record 10,000 units in 2016, and this is expected to contribute $25 million to $30 million 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."


The six new serviced residences include Ascott Xiangjiang FFC Changsha (above), Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Congtai Handan. Ascott plans to open more than 30 properties worldwide this year, of which 16 will be in China. PHOTOS: THE ASCOTT

In China, Ascott is one of the leading international serviced residence owner-operators, with more than 17,300 units in 96 properties across 27 cities.

Of the six new serviced residences secured, Citadines Sunhope e-Metro Shenzhen, Ascott's largest property in China, is slated to open this year. 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 start operations from 2019.

Last year, Ascott opened 14 properties in China, adding over 2,000 units to its portfolio.

Ascott also announced the appointment of Mr Kevin Goh as chief operating officer to assist the CEO in overseeing operational aspects of the business and new growth opportunities, especially relating to its digital and online strategy.

Prior to this, Mr Goh had been Ascott's managing director for North Asia since 2013, responsible for investments and operations in China, Japan and South Korea.

A version of this article appeared in the print edition of The Straits Times on January 20, 2017, with the headline 'Ascott to manage six more properties in China'. Print Edition | Subscribe