Ascott celebrates record growth year with new properties in Africa
Now 2018 just has been started, many businesses and hotel groups are reflecting on the past year’s successes and losses, and one group that will have cause for celebration is The Ascott Limited, a branch of CapitaLand’s serviced residence units. 2017 was a year of record growth for Ascott, who operates over 30,000 serviced residence units in the Americas, Europe, Asia Pacific and the Middle East, with 22,000 more in the pipeline, bringing the total to more than 52,000 units in over 300 properties, operating in 100 cities across 29 countries. The group is riding high on their latest expansion into Africa, a region which has the world’s second fastest growing economy, with growth predicted at a rate of 4.3% from 2016 to 2020. Ascott has signed two contracts in the African city of Accra, a hot spot for development and an opportune place for the development of serviced residences. The two projects will be the 220-unit Ascott 1 Oxford Street Accra, which is set to open in a number of phases from 2019 onwards, while the 40-unit Kwarleyz Residence is slated to open in the fourth quarter of 2018.
Mr Thomas Wee, Ascott’s Deputy Managing Director for India, Middle East & Africa, said: “The serviced residence industry in Africa has significant untapped potential. Managing Kwarleyz Residence gives us quick time-to-market as it is already under development, while we design our second property under our premier Ascott The Residence brand, which will offer top business executives luxurious living in an exclusive environment. Ascott 1 Oxford Street Accra will be one of the tallest towers in Accra, within walking distance to the financial district, recreational and retail outlets, while Kwarleyz Residence is in an upscale residential area surrounded by embassies. With the properties’ prime locations and Ascott’s award winning hospitality, both properties will be a huge draw for business and leisure travellers.”
Mr Lee Chee Koon, CEO of Ascott, said: “We are excited to close a record year of growth for Ascott with the successful addition of another continent, Africa, to Ascott’s global footprint. Ascott added 18 new cities across nine countries and secured a record of over 21,000 units in 2017. This is not only twice the increase in 2016, but also Ascott’s largest ever portfolio expansion in a single year. As these properties progressively open and stabilise, we can expect more fee income contribution to Ascott annually. Ascott is set to surpass its target of 80,000 units well ahead of 2020 as we continue with this growth trajectory, expanding through strategic alliances, management contracts, franchises and investments.”
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