Ascott adds 2,100 units in China

George Sell George Sell Uploaded 16 October 2020

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China: Ascott has signed more than 2,100 new units across 12 properties in China in the last three months.

With these new units, Ascott has added a record high of more than 5,600 units across 26 properties, which represent a 60 per cent year-on-year growth in units in China. Globally, Ascott has sealed new contracts for more than 3,700 units across 22 properties; about 60 per cent of which are from China and the rest are in various countries including Austria and Indonesia.

Ascott is also seeing strong recovery in China on the operations front. Its apartment revenue in September 2020 performed close to 95 per cent of that in September 2019. Meanwhile, Ascott has been maintaining a steady stream of openings as demand for extended-stay properties continues to grow. In 2020, Ascott has opened 17 properties with more than 2,400 units, with about half of these units in China.

Ascott CEO Kevin Goh said: “The COVID-19 pandemic has brought the resilience and flexibility of Ascott’s business model to the fore. In 2020, we have signed more than 9,300 units in 48 properties worldwide while expanding in China at a record rate. We are also planting new flags in markets such as Austria and Indonesia, offering our guests a wider network of Ascott properties. At the peak of the COVID-19 situation, many of Ascott’s properties worldwide remained open to provide a safe haven for our long-stay corporate guests, maintaining a robust average occupancy rate. With China being the first major economy to resume growth[1] after the pandemic and the easing of domestic travel restrictions in the country, we are seeing strong recovery at our properties in China.”

“To provide guests with peace of mind, we launched the ‘Ascott Cares’ commitment to continue to deliver stringent hygiene and cleanliness standards. Ascott has also partnered with Bureau Veritas to provide independent audits for the hygiene and safety standards of our properties worldwide. At the same time, we have also been actively implementing various initiatives such as the launch of our ‘Discover ASR’ mobile app, ‘Work-In-Residence’, ‘Space-as-a-Service’ and our digitalisation efforts, to ensure Ascott is future-ready,” added Goh.

Tan Tze Shang, Ascott’s managing director for China and head of business development for China, said: “During China’s Golden Week holiday from 1 to 9 October 2020, several of Ascott’s properties in cities such as Beijing, Shanghai, Hangzhou, Suzhou, Chongqing, Xi’an and Wuxi, which are popular destinations amongst domestic travellers, achieved 100 per cent occupancy. Apartment revenue for our properties in China was also higher during the Golden Week holiday compared to the same period last year. With the 12 new properties secured in China, Ascott will make inroads into three new Chinese cities, Baotou, Ningbo and Yantai, while strengthening our presence in Changchun, Guangzhou, Hangzhou, Shanghai, Shenzhen, Suzhou and Xi’an. These properties are slated to open between December 2020 and 2026. The new additions will reinforce Ascott's position as the largest international serviced residence owner-operator in China with about 30,000 units in over 150 properties.”

In addition to the properties secured in China, Ascott has also signed contracts for 10 more properties and more than 1,600 new units across various countries such as Austria and Indonesia. These properties are set to open between 2021 and 2024.

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