Ascott bags over 20 new signings under Oakwood portfolio since H2 2022

SINGAPORE – The Ascott Limited, CapitaLand Investment’s (CLI) lodging business unit, has secured over 3,000 units across more than 20 properties under its Oakwood portfolio of brands since the second half of 2022.

This represents more than 20 per cent growth for Ascott’s Oakwood portfolio since its acquisition from Mapletree Investments in the first half of 2022, said the company on Jan 18.

This also makes the Oakwood portfolio – which includes brands such as Oakwood and The Unlimited Collection, as well as other unbranded properties – one of Ascott’s fastest-growing global brands in 2023, the company said.

With these signings, Oakwood will have almost 18,000 units across 48 cities. This includes new markets in South Korea, Indonesia, Malaysia and Vietnam.

Mr Kevin Goh, chief executive for Ascott and CLI lodging, said the “smooth integration” of the Oakwood portfolio into the company’s operational framework has helped to drive revenue, and optimised cost synergies. For instance, properties won over from other operators in Jakarta and Manila were converted and made operational within months of their signings in 2023.

“With more operationally ready properties coming onstream at a faster pace, we are seeing an immediate contribution of the Oakwood portfolio to Ascott’s recurring fee income, which is in line with our aim to double fee earnings to more than $500 million by 2028,” he said.

The new signings are part of Ascott’s efforts to refresh the Oakwood brand, which was previously known for its serviced apartments for corporate travellers. Beyond serviced apartments, the brand refresh will see Oakwood offer more city hotels and full-service resorts, said the company.

Villa resort Oakwood Ha Long was opened earlier in 2024 and another two similar properties will open in Bali and Chongli in the first half of 2024, said Ascott.

Ms Tan Bee Leng, the lodging operator’s managing director for brand and marketing, said: “With the rise of telecommuting and flexible schedules, business travellers increasingly view work trips as opportunities to extend their stays for leisure purposes.”

She added: “Our refreshed Oakwood brand aims to address this growing market of business professionals who increasingly value holistic travel experiences.”

Mr Goh said that Ascott will continue pursuing “transformative deals” to accelerate its expansion while providing immediate access to new markets, diverse customer bases and valuable synergies.

“Coupled with our continued focus on organic signings of management and franchise contracts, we not only intend to keep pace with industry trends but also to break new ground and stay ahead, positioning Ascott as a global leader in hospitality,” he said.

The Oakwood brand refresh follows the refresh of sister brands Ascott, Citadines, The Crest Collection and Somerset in the past two years.

Units of CLI closed one cent higher at $2.97 on Jan 18.

THE BUSINESS TIMES