CapitaLand's serviced residence arm, The Ascott, has formed a strategic alliance with Indonesian property developer Ciputra Development Group, under which Ascott will manage serviced residences to be developed by the latter in Indonesia and China over the next five years.
The first property, the 253-unit Citadines Sudirman Jakarta, will open in 2021.
The strategic alliance was signed yesterday at the opening ceremony of Ascott Sudirman Jakarta, which Ascott acquired from Ciputra last year.
Since partnering Ciputra in 1996 for the Somerset Grand Citra Jakarta, which is jointly owned with Ascott Residence Trust, Ascott has also acquired the Ascott Kuningan Jakarta from Ciputra in 2014.
Mr Kevin Goh, Ascott's chief executive, said: "With an expanded product offering, we expect to pick up pace in our growth in the country.
"Indonesia is South-east Asia's largest economy, where we see huge potential for us to expand. The country is witnessing increasing economic activities as well as infrastructure developments to improve travel connectivity, driving demand for quality accommodation."
Ascott also recently struck a partnership with one of Indonesia's leading hotel operators, Tauzia Hotel Management.
These partnerships have helped Ascott grow its footprint to over 130 serviced residences and business hotels, with close to 22,000 units across 39 cities in Indonesia.
Mr Artadinata Djangkar, Ciputra's senior director, said: "We have properties in cities such as Jakarta, Semarang and Surabaya in Indonesia with potential to be developed into serviced residences.
"These properties can be managed by Ascott through its portfolio of brands. Tapping Ascott's global network and deep hospitality expertise, we are confident that the serviced residences will do well, and we can enjoy good returns."
Indonesia received over 14 million overseas visitors last year, about two million more than in 2016.