The Ascott Limited, CapitaLand Investment’s (CLI) wholly-owned lodging business unit, announced that it has secured 28 new signings year-to-date (ytd) in Southeast Asia, accounting for over half of Ascott’s global signings in the same period.
Seven of the newly signed properties are under Oakwood and will open in Cambodia and Singapore, as well as expand across cities in Indonesia. The remaining signings are through other brands including Somerset, Citadines, The Unlimited Collection and lyf.
The new signings, adding over 3,400 units across various brands of the lodging business also mark Ascott’s entry into new cities such as Purwakarta in Indonesia and Kulim in Malaysia.
The expansion comes amid “strong growth prospects” in the region, says Ascott. Referring to figures by Statista, Ascott notes that Southeast Asia’s hotels market is expected to grow at a compound annual growth rate (CAGR) of 5.78% to achieve US$16.41 billion ($21.18 billion) in revenue by 2029. Southeast Asia is also likely to see tourism arrivals reach pre-pandemic levels by the end of 2024, according to a report by JLL.
“Our recent signings in Southeast Asia underscore the confidence property owners and developers have in us, reinforcing the dominance of Ascott’s flex-hybrid model in the region. By employing a ‘glocal’ approach, we effectively broaden our reach with Ascott’s global brands while also delving deeper into the local destinations through our regional offerings,” says Serena Lim, chief growth officer for Ascott.
Wong Kar Ling, chief strategy officer and managing director of Southeast Asia for Ascott notes that Southeast Asia contributes over 30% to Ascott’s total revenue. As such, the region remains key to the brand’s global expansion strategy.
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“Leveraging our experienced local teams and their deep market insights, along with a robust conversion framework that enhances our speed-to-market, we are on track to open 28 new properties in Southeast Asia this year, with 12 already completed,” says Wong.
As at 9.14am, shares in CapitaLand Investment are trading 2 cents higher or 0.68% up at $2.95.
