The lodging business unit of Capitaland Investment’s, The Ascott Limited, has set its sights on doubling its fee revenue to over $500 million over the next five year period. This target is set off the company’s FY2022 fee earnings of $258 million, which is their highest on record so far. Indeed, they reported a 36% year-on-year increase in the same year with their record property openings and signings.
Furthermore, Ascott has achieved their goal of securing 160,000 units by 2023. They recorded 4,000 new unit signings during the first quarter of FY2023.
Through their asset-light strategy, Ascott has doubled its units every five years, expanding from 20,000 units in 2008 to over 160,000 units. This impressive growth is now yielding financial dividends, so the company is leaning on driving even greater fee revenue in the coming five years. With over 80% of its units under management and franchise contracts, up from 43% in 2008, the firm is hopeful of greater success in this regard.
CEO of Ascott and CLI Lodging, Kevin Goh, said: “We will secure more management and franchise contracts for prime properties that generate higher quality fees, and leverage our strong brand equity and direct distribution channels to deliver greater value to property owners and customers.”
To further build upon their success, Ascott plans to expand its product offering which spans serviced residences, hotels, co-living and senior living brands at a low to luxury scale. Their fee revenue growth is expected to be bolstered by new property openings as well as new signings at an estimated 8-10% annual net room growth rate in the coming five years.
As such, the company is well-positioned to achieve its new growth target – all the while delivering more value to both property owners and customers.