Amid Covid-19 Crisis, Ascott Records 139% YoY Growth
Ascott has set a new record by securing contracts for 25 new properties with over 5,400 units across 19 cities globally. This is the largest number of new properties Ascott has clinched in the first five months of any year. This is also a 139 per cent year-on-year increase in the number of units secured, compared to the same period in 2019.
Through the new properties, Ascott will expand its geographical reach into four new major cities in China, Indonesia and Morocco. Ascott will enter Zhengzhou, the capital of Henan Province; and Nanchang, the capital and largest city of Jiangxi Province. In Indonesia, it has expanded into Jayapura, the capital and largest city of Papua Province; and in Morocco, it has ventured into Casablanca, the largest city of Morocco. Ascott will also further strengthen its presence in key gateway cities such as Shanghai, Guangzhou and Chengdu in China; Batam and Surabaya in Indonesia; as well as Manila in the Philippines.
The 25 new properties are secured under management contracts, franchise contracts and a lease. The properties will open in phases between 2020 and 2024. This year, Ascott has also opened six new properties in Singapore; Changsha and Tianjin in China; Gold Coast in Australia; Osaka in Japan; and Tours in France.
Ascott continued to ramp up its presence with these new signings and property openings amid the Covid-19 outbreak, when many of Ascott’s serviced residences remained operational to provide a safe haven for its guests, including healthcare workers, returning nationals, and those affected by border closures. As cities emerge from their lockdowns, Ascott’s value proposition as a ‘home away from home’ continue to resonate well with its guests and partners across the world.
Half of the 25 new contracts secured are in China. Ascott has also signed its first rental housing property in China, located in Shanghai. The expansion into the segment taps on the growing demand from young, mobile workers as well as returning students from abroad who are looking to rent quality fully furnished homes in the tier one and tier two cities on a long-term basis in China.
In Q2 2020, a quarter of Ascott’s properties in China have achieved occupancy rates of over 70 per cent. Ascott has also achieved 100 per cent occupancy rate across some of its properties in cities such as Hangzhou, Suzhou and Wuxi over China’s five-day ‘Mini Golden Week’ public holiday.
In May 2020, Ascott launched ‘Ascott Cares’ to deliver stringent hygiene and cleanliness standards as well as safe distancing to continue providing safe homes for its guests, and a safe working environment for its staff. Covering nine commitments, ‘Ascott Cares’ is in compliance with the World Health Organisation standards and local regulations. It is being rolled out progressively to its properties globally from June 2020.
With the addition of the 25 new contracts, Ascott has a total of close to 118,000 units in over 700 properties worldwide. These new contracts will offer a boost towards achieving Ascott’s global target of 160,000 units by 2023.