Ascott exceeds 2019 record growth in property units

An artist's impression of Quest Woolooware Bay in Sydney. It is one of the 71 properties Ascott added globally last year. PHOTO: ASCOTT
An artist's impression of Quest Woolooware Bay in Sydney. It is one of the 71 properties Ascott added globally last year. PHOTO: ASCOTT

CapitaLand's The Ascott has built a four-year-straight streak of record growth in property units as it boosts recurring fee income through management and franchise contracts.

Last year, it added 14,200 units across 71 properties globally.

Despite Covid-19, this number exceeded the 14,100 added in 2019, based on numbers disclosed in December that year.

This refers to units signed up based on management contracts, franchises and strategic alliances, said Ascott.

The new units added last year are expected to boost Ascott's annual fee income by more than $27 million as the properties progressively open and stabilise.

Ascott chief executive Kevin Goh, who is also CapitaLand's chief executive for lodging, said more than 80 properties with about 17,000 units are slated to open this year.

Among these are more than 70 properties with more than 15,000 units in the Asia-Pacific region, which is expected to lead the global economic recovery, he added.

Ascott's business in China continues to lead its global expansion.

Mr Goh said Ascott will continue to build its recurring fee income through the new management and franchise contracts.

"We will continue to look for opportunities to expand our presence through management contracts, franchises, strategic alliances and stand ready to seize good investment opportunities," he added.

"While we were not spared the short-term operational impact of Covid-19, we believe that the fundamental demand for lodging remains intact and will bounce back quickly once the global pandemic is brought under control."

Separately, Ascott introduced 25 new properties last year that added more than 3,900 units to its global inventory.

These include the opening of 10 properties with more than 1,800 units in China.

For comparison, in 2019, the number of properties opened alone contributed to the addition of 7,500 units.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on January 13, 2021, with the headline 'Ascott exceeds 2019 record growth in property units'. Print Edition | Subscribe