Positioning for the Future | 73
Ascott
Ascott is the largest international serviced
residence owner-operator in the world, with a
portfolio of quality serviced residences which it
manages and enhances through its operations
and award-winning brands spanning 89 cities
in 24 countries.
A Year of Tremendous Growth
2014 has been a year of tremendous growth for Ascott,
adding over 4,800 units to its global network through
acquisitions, management contracts, strategic alliances,
franchises and leases. As at 31 December 2014,
Ascott owns and manages over 38,300 units in
256 properties across more than 89 cities in Asia Pacimc,
Europe and the Gulf region.
In 2014, Ascott secured 21 management, lease and
franchise contracts, and acquired six properties, out of
which mve are acquired by Ascott Residence Trust
(Ascott Reit), extending its presence to seven new cities
in China, Indonesia, Laos, Myanmar and South Korea.
In China, Ascott successfully crossed its target of
12,000 apartment units this year, reinforcing its
leadership position as the largest international serviced
residence owner-operator in China with 69 properties
across 23 cities.
Ascott’s hospitality management and service fee income
remained stable at S$133 million. Overall, Revenue Per
Available Unit grew by 3% to S$123 in 2014, driven
mainly by growth in China, Europe and Japan.
Ascott continued to grow through acquisitions in 2014.
It acquired The Mercer in Hong Kong and
Ascott Kuningan Jakarta in Indonesia, for a total of
approximately S$179 million. Through Ascott Reit,
it acquired properties in Dalian, Tokyo and Greater
Sydney with an aggregate property value of
approximately S$307 million.
In addition, Ascott unlocked value through the
divestment of three serviced residence properties to
Ascott Reit, two of which were held by its 36.1%-owned
Ascott China Fund.
In 2014, Ascott continued to drive growth in China
through forming a strategic alliance with Vanke, a leading
developer in China. In Australia, Ascott acquired a 20%
stake in Quest Serviced Apartments (Quest) and expects
to invest up to S$560 million to acquire new properties
which Quest will secure for its franchise in Australia over
the next mve years.
Ascott continued its asset enhancement initiatives
(AEIs) to reposition and upgrade its products to drive
organic operational growth. Since 2013, close to
S$100 million was invested to refurbish various properties
in Asia and Europe. Results were positive as refurbished
properties achieved higher Average Daily Rate (ADR).
For instance, the ADR of refurbished Citadines Ramblas
Barcelona was lifted by 17% for its renovated rooms.
To cap off its 30
th
year of hospitality excellence,
Ascott received a total of 84 highly-coveted accolades in
the year, cementing its position as the global leader in the
serviced residence industry.
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Ascott will continue to consolidate its position in key
markets and enhance the value of its portfolio through
acquisitions, robust AEIs and divesting properties for
optimal returns. Growth will be accelerated through
acquisitions, management contracts, strategic alliances
and franchises, to achieve its new target of 80,000 units
globally by 2020. Additional fee contribution is expected
to improve return on equity once Ascott reaches stabilised
operation scale.
Ascott Midtown Suzhou, China
Business Review
