The Ascott has secured contracts to manage six properties with over 1,200 apartment units in China, expanding its presence in Changsha, Shenzhen, Tianjin and Wuhan while extending its footprint to two more cities – Handan and Xuzhou.
Of the six new serviced residences secured in China, Citadines Sunhope e-Metro Shenzhen, Ascott’s largest property in China, is slated to open this year. Citadines Qingshan SCPG Centre Wuhan and Tujia Somerset Jundu Tianjin are scheduled to open in 2018 while Ascott Xiangjiang FFC Changsha, Citadines Yunlong Lake Xuzhou and Tujia Somerset Congtai Handan will start operations from 2019.
Citadines Qingshan SCPG Centre Wuhan
The Singapore company is also poised to boost its fee income with record opening of over 30 properties worldwide this year, of which 16 will be in China.
Lee Chee Koon, CEO of Ascott, said: “Ascott crossed the 50,000-unit milestone last year, and there will be no let-up in our efforts to build up Ascott’s global scale and accelerate our growth in 2017. We clinched a record 10,000 units in 2016 and this is expected to contribute S$25 million to S$30 million of fee income to Ascott annually as the properties progressively open and stabilise.”
Tan Tze Shang, Ascott’s newly appointed managing director for China, said Ascott’s investment in Chinese online apartment sharing platform Tujia has propelled their growth and reach in the country. “Since the launch of our Tujia Somerset brand last year to tap on the booming middle-class segment, we have secured 11 properties and surpassed our 2016 target of 2,000 units under this brand,” he said.
He added that Ascott has set a goal of 20,000 units in China by 2020, up from its current 17,300 units in 96 properties across 27 cities. Last year, Ascott opened 14 properties in China, adding over 2,000 units to its portfolio.
Ascott is targeting 80,000 units worldwide by 2020 and has appointed Kevin Goh as COO to assist the CEO in overseeing operational aspects of the business and new growth opportunities, especially relating to its digital and online strategy.
Prior to this, Goh was Ascott’s managing director for North Asia since 2013, responsible for investments and operations in China, Japan and South Korea. He was the former regional general manager for Greater China and vice president for business development.