CapitaLand's wholly owned serviced residence business unit, The Ascott, has secured seven new properties across seven cities in Asia.
They are in Karawang in Indonesia, Putrajaya in Malaysia, Danang in Vietnam and Tokyo, Japan, as well as Changsha, Shanghai and Shaoxing in China.
With these 1,714 units added to its portfolio, Ascott said it is poised to outpace last year's growth, which was already a record. It has secured more than 5,000 units in 26 properties in the first six months of this year.
Ascott chief executive Lee Chee Koon said the firm is set to continue this expansion momentum for the rest of the year.
"We are able to scale up quickly because of the strong alliances with global partners, as well as industry leaders, from landowners to property developers, construction firms, online platforms and tech companies, all of whom recognise Ascott's expertise and strength as a global serviced residence leader," he said.
KEY GROWTH FACTOR
We are able to scale up quickly because of the strong alliances with global partners, as well as industry leaders, from landowners to property developers, construction firms, online platforms and tech companies, all of whom recognise Ascott's expertise and strength as a global serviced residence leader.
ASCOTT CHIEF EXECUTIVE LEE CHEE KOON
"The addition of these seven management contracts will further boost our income from management fees. With a strong reputation built for our award-winning brands and the value we provide to property owners - through our expertise in design, operations, global sales and marketing, as well as our experience in managing properties worldwide - we are confident of achieving our target of 80,000 units globally by 2020."
South-east Asia remains Ascott's fastest-growing market and second-largest globally after China, where it has the most number of properties.
The new serviced residences deepen Ascott's presence in Danang, Changsha, Shanghai and Tokyo, and enable Ascott to bring its award-winning brands to two new cities in Asia.
The 124-unit Somerset Ginza East Tokyo is slated to open next month, while the 135-unit Citadines Festive Walk Karawang, 550-unit Citadines Blue Cove Danang, 180-unit Citadines Xingsha Changsha and 250-unit Citadines Keqiao Shaoxing will be opening in 2018.
The 200-unit Somerset West Hongqiao Shanghai will welcome its first guests in 2019, while the 275-unit Somerset Putrajaya is expected to open in 2020.