ASCOTT today announced it has secured its first franchise agreements in Vientiane, Laos and Bali, Indonesia.
The agreements are for an operating serviced residence in Vientiane that will be rebranded as a 116-unit Somerset Vientiane in the 4Q2014, and a 194-unit Citadines Kuta Beach Bali scheduled to open this August.
Lee Chee Koon, Ascott’s CEO, said: “These franchise agreements mark a new milestone for Ascott…Franchise will be one of Ascott’s growth drivers for the future. Through the franchise agreements, we have added two more cities to our portfolio to reach 85 cities worldwide.
“Together with investments, management contracts and strategic alliances, franchise will bring us closer to achieving our target of 40,000 apartment units globally by 2015.”
He added: “As the Laos government pushes for more economic reforms and creates more special economic zones across the country, the number of expatriates and corporate travellers in the economic hub of Vientiane will increase. This will generate significant demand for our serviced residence, especially since there is a lack of international-class serviced residences in Vientiane.
“While most of our guests are expatriates and business travellers on extended stay, more leisure travellers are also choosing to stay in Ascott’s serviced residences. Bali is a popular destination for holiday, meetings and conferences…It (the Bali property) will further reinforce Ascott’s position as the largest international serviced residence owner-operator in Indonesia with over 2,400 apartment units across 11 properties in Jakarta, Surabaya and Bali.”
Ascott awarded the franchise for Somerset Vientiane to a subsidiary of LCD Global Investments, a real estate and hospitality group listed on the Singapore stock exchange.
Under the agreement, the serviced residence will be managed by Ascott for the first two years to ensure that it is refurbished to Somerset brand standards before transitioning to a franchise arrangement.
The franchise for Citadines Kuta Beach Bali was awarded to Menara Permata Propertindo.
