Ascott aims to double its fee revenue to over S$500 million in the next five years, renewing its focus on quality growth. The wholly-owned lodging business unit of CapitaLand Investment Limited has already achieved its target of securing 160,000 units by 2023, having signed over 4,000 units in 1Q 2023. The company has rapidly grown
Ascott aims to double its fee revenue to over S$500 million in the next five years, renewing its focus on quality growth. The wholly-owned lodging business unit of CapitaLand Investment Limited has already achieved its target of securing 160,000 units by 2023, having signed over 4,000 units in 1Q 2023. The company has rapidly grown its operational units from over 56,000 in 2018 to over 95,000 in 2022, underpinned by its acquisition of Oakwood, which added about 15,000 units to its portfolio. Ascott expects to open more than 13,500 units in over 70 properties this year and will continue to expand its product offerings across different scales. The company will also upgrade several strategically located properties into brand flagship assets.
Ascott demonstrated strong operating performance in FY 2022, with a 40% YoY increase in revenue per available unit (RevPAU) with the recovery of international travel. The company is also riding on the recovery of international travel to further optimise its operational portfolio performance. Substantial resources have been deployed for a global Brand 360 exercise to position its suite of brands to cater to a diverse range of guests. Ascott’s loyalty program – Ascott Star Rewards (ASR) – has grown exponentially, with membership growing 36% in 2022 and member revenue increasing five-fold from 2021.
Ascott added over 4,000 units across 20 properties in cities, including Shanghai, Bali, and Osaka, in 1Q 2023. Ascott expanded its presence in key cities across the world and opened more than 9,300 units across 45 properties in 2022, including its first lyf coliving property to open in Australia, its first operational property in China’s bustling port city, and its first Oakwood-branded property in one of the largest cities in the Pearl River Delta Economic Zone.
As travel restrictions in China relax, customer inquiries for Ascott’s properties have increased significantly. The average daily reservation volumes for its properties in China grew by about 150% in March 2023 compared to December 2022. As the frequency of flights continues to normalize and return to pre-pandemic levels, Ascott is well-positioned to capture China’s inbound and outbound demand.
In conclusion, Ascott’s quality growth strategy through expanding its product offerings and upgrading its properties will likely be successful in the coming years as the world recovers from the pandemic. Its strong operating performance and successful loyalty program indicate the company is well-positioned for success.
Written by: Supaporn Pholrach (Joom)