The Singapore-based company is developing assets in many sectors and hopes to develop its commercial accommodations division. A full pipeline will allow the group to achieve its goals.
Retail, residential, office... CapitaLand's activities are very diversified, but it is the hotel division that the group is interested in because it generates the best revenues.
Thus, for the brand Citadines, 98 openings have been forecast by 2023 in Asia, the Middle East and in Europe.
The group is actually present in 15 destinations: Germany, Australia, Belgium, China, Spain, France, Indonesia, Japan, Malaysia, Philippines, United Kingdom, Singapore, USA and Vietnam. It has announced the opening of 22 properties for 6,000 keys by 2023.
Mr Kevin Goh, Ascott’s Chief Executive Officer, said: “We are fast-expanding Ascott’s global network of properties as we continue to pursue an asset-light business model to boost our recurring fee income. While we achieve strong momentum in expanding our global lodging business through strategic alliances, management contracts, franchise and leases, we are also accelerating the number of new property openings. For the first quarter this year, our operational units have contributed S$59.7 million of fee income. We are targeting to open over 40 properties with about 8,500 units this year. For every 10,000 serviced residence units signed, we are expecting to earn approximately S$25 million in fee income annually as the properties progressively open and stabilise. Through these growth strategies, we are looking forward to the fee income boost when we achieve our target of 160,000 units worldwide by 2023.”
In addition to organic growth, it is very likely that the Singapore-based group plans to invest in other groups to grow its portfolio.