CapitaLand's lodging business unit The Ascott has signed up 26 new properties, a majority of which are under management contracts, with three on franchise agreements, it said yesterday just after the market opened.
These properties, which will open in phases from this year to 2023, cover 6,000 units across 22 cities and 11 countries, the bulk of which are in the Asia-Pacific. The other regions include Central Asia and Africa.
The move will also see Ascott entering six new cities - namely Atyrau in Kazakhstan, Nairobi in Kenya, Yokohama in Japan, Seongnam in South Korea and Cam Ranh and Hoi An in Vietnam.
It has also strengthened its presence in 14 cities, including Melbourne and Sydney in Australia; Chengdu, Dongguan, Guangzhou, Shanghai, Shenzhen, Wuhan and Xi'an in China; Bogor and Jambi in Indonesia; Cyberjaya in Selangor, Malaysia; Cebu in the Philippines and Bangkok.
In addition, Ascott has expanded its select-service business hotel brand Citadines Connect to Bangkok, after Sydney and New York. It has also taken the hotel brands under Tauzia, which it has a majority stake in, to Malaysia and Vietnam, beyond Indonesia.
Ascott also signed its fifth Citadines property under its partnership with Huazhu Hotels Group and its unit CJIA Apartments Group.
In the year to date, Ascott has signed contracts for more than 40 properties with over 8,000 units, a more than 40 per cent increase in units compared to a year ago. It also opened 16 properties with over 2,000 units, 70 per cent up from a year ago.
Ascott chief executive Kevin Goh said that in the first quarter, operational units contributed $59.7 million of fee income.
This year, Ascott is targeting to open more than 40 properties with 8,500 units.
With every 10,000 serviced residence units signed, it is also expecting to earn around $25 million in fee income annually as the properties progressively open.
"Through these growth strategies, we are looking forward to the fee income boost when we achieve our target of 160,000 units worldwide by 2023," Mr Goh added.
CapitaLand shares closed at $3.68, down 0.3 per cent yesterday.