The Ascott Limited (Ascott), the lodging business unit wholly owned by CapitaLand Investment (CLI), announced a 28% y-o-y increase in fee-related earnings (FRE) to $331 million for FY2023 ended Dec 31, 2023, up from $258 million in FY2022. This meant that Ascott was a key contributor of FRE to CLI’s overall business.
See more: CapitaLand Investment posts FY2023 earnings decline of 79% to $181 mil
Ascott also achieved the highest number of property openings with nearly 9,600 units turning operational in the same year. Riding on a strong momentum of travel recovery, Revenue per available unit (RevPAU) grew 20% y-o-y from higher average daily rates and occupancies.
In 2023, 77 new properties across all brands were signed. The strong growth trajectory enabled Ascott to surpass its year-end target and secured 160,000 units earlier than expected in March.
“Harnessing our extensive network of third-party owners and in-market expertise, Ascott remains focused on driving asset light growth organically through management and franchise agreements. In 2023, 38% of new agreements signed were with existing owners, a demonstration of their confidence in us. At the same time, we are seeking out transformative deals which can accelerate our expansion. We will continue to build upon our portfolio of global brands to drive higher quality growth. This puts us well on track to achieve our target of more than $500 million in fee earnings by 2028,” says Kevin Goh, CEO for Ascott and CLI Lodging.
Riding on the momentum of a record growth year, Ascott is strengthening its top leadership team with new C-suite appointments. These appointments will bolster and capitalise operations, commercial, strategic planning, and hospitality design efforts. They will be part of the Ascott Leadership Council, which is led by Goh.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
“Ascott is tapping into our experienced leadership bench to lead the charge in our next phase of growth as a global integrated lodging operator. This series of executive appointments is Ascott’s commitment to our owner and franchise communities, and to our guests, that we will be offering more best-in-class products and services to meet the strong consumer demand of modern travellers. With our flex-hybrid hotel-in-residence model, Ascott will continue to break new ground to meet travel needs across all stay purposes globally. Having a strong senior leadership team is integral to us achieving this vision,” adds Goh.
Shares in CLI last traded 1.46% higher on Feb 28 at $2.78.
