After a modest launch with its first serviced residence, The Ascott Singapore, in 1984, lodging and hospitality company The Ascott Limited (Ascott) has expanded to be one of Asia’s fastest growing hospitality businesses, with about 950 properties globally. As the firm, a wholly owned business unit of global real estate asset manager CapitaLand Investment (CLI) celebrates its 40th birthday this year, it does so in a time of significant expansion across multiple countries. But as Serena Lim, chief growth officer, shares, “sustainable growth is built into the business model”.
Headquartered in Singapore, Ascott is present in more than 220 cities in over 40 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa, and the USA. Its accommodation offerings span serviced residences, coliving properties, hotels and independent senior living apartments, as well as student accommodation and rental housing. Its hospitality brands, meanwhile, include Ascott, Citadines, lyf, Oakwood, Quest, Somerset, The Crest Collection, The Unlimited Collection, Preference, Fox, Harris, POP!, Vertu and Yello.
In the second half of 2022, Ascott acquired Oakwood Worldwide (Oakwood), a premier global serviced apartment provider, which has become a key vehicle for its global growth. Since the acquisition, Ascott has expanded Oakwood’s presence to 48 cities, entering new destinations including Busan in South Korea, Batam and Bali in Indonesia, Penang and Kota Kinabalu in Malaysia, Visakhapatnam, Chennai and Navi Mumbai in India, as well as Ha Long in Vietnam. With almost 18,000 units to date, the Oakwood portfolio has grown by more than 20% post-acquisition, making it one of the fastest growing global brands in the Ascott portfolio with over 20 new signings since the acquisition.
“Oakwood is really focused on the serviced residence / extended stay sector, and with this deal we became one of the top three serviced residence players in the world,” Lim confirms. “We have been looking at both buying and creating brands, and Oakwood was a good fit. It gives us the opportunity to move more quickly into certain markets, such as India, Korea, and Japan. At the same time, we have incorporated Oakwood into our own global sales and marketing platforms, revenue and distribution network, digital systems and our loyalty programme, Ascott Star Rewards.”
Lim says that Oakwood has allowed Ascott to penetrate deeper not only into “primary destinations but also regions and resorts”, with properties signed in locations ranging from Busan to Mumbai and Penang. “Our real focus as a company is to be an accommodation provider and meet the needs of our owners,” she adds. “We’re making sure we listen to what our guests are saying, that we are evolving our brands and evolving our experiences.”
Lim notes that post-pandemic, “long stays are getting shorter and short stays are getting longer”, explaining that while longer-term work assignments have often become more limited, trends like bleisure and the rise of the digital nomad have added days to the traditional short stay. “Stay durations have become a bit more ‘murky’, but we are responding to those trends.”
Vertically-integrated lodging operator
Harnessing its network of third-party owners and market expertise, Ascott grows fee-related earnings through its hospitality management and investment management capabilities. Ascott’s investment management efforts are anchored by its listed vehicle, CapitaLand Ascott Trust, the largest lodging trust in Asia-Pacific. It also invests through its private funds, Ascott Serviced Residence Global Fund (ASRGF), CapitaLand Ascott Residence Asia Fund II (CLARA II) and Student Accommodation Development Venture (SAVE).
Lim underlines that in terms of growth, Ascott is focusing on an asset-light strategy, with a plan to “double fee income to S$500 million by 2028”. A part of this will involve the company’s coliving model, branded as lyf. Lim prefers the term “social living” to coliving, as she says it can imply both short and long stays. “We are looking at the notions of wellness and community. lyf is great for solo travellers, those who want to meet new people, or coordinate meet-ups with larger groups.” Ascott currently has 30 lyf properties in 21 cities, with ambitions to grow this to 150 by 2030. “We can do this because there is a surge in travellers seeking experiential-led social living,” she says.
Ascott has also noticed an increase in demand for franchising post-pandemic, and will expand its franchise platform accordingly. Another hallmark of the growing business is conversions, a couple of which were completed last year for Oakwood. “Oakwood Hotel & Apartments Taman Mini Jakarta and Oakwood Makati Avenue were newly inked properties in 2023 which were swiftly converted and went into operations within months of signing,” she adds. “You have to be nimble and fast and squeeze everything that a brand represents into a conversion – we have a team handling that. That allows us to take on distinctive properties into our own DNA quite quickly through our brands.”
Lim notes that although Ascott has become synonymous with serviced residences, around 40% of its business is in the short-stay market. “We are growing in so many areas, including meetings, and also expanding our F&B capabilities,” she adds. “Our 14 brands offer something for everyone – from guests choosing the luxury of an Oakwood to lyf for the next generation traveller. It is all about providing distinctive experiences, which is what guests really want.”
Despite this expansion, Lim acknowledges that the flexible serviced residence is at the heart of Ascott’s successful growth story. “Serviced apartments are a model of resilience,” she says. “The reason why the apartment has become a mainstream accommodation choice today is because it did so well during the pandemic. Our hybrid hotel-in-residence formula can cater to all kinds of guests. We can ride recovery, but also the rough times – hopefully not another pandemic, but we are ready for any eventuality.”
“Take lyf Funan Singapore, which opened shortly before the pandemic hit, and was fully booked at the time. It became a successful long stay option during Covid and then switched back to short stay when the market shifted, we didn’t have to do anything but alter the programming.”
“Our sustainable business model is also backed by our commitment to ESG,” Lim says. In 2022, Ascott became one of the first hotel groups in the region to receive GSTC-Recognised status from the Global Sustainable Tourism Council (GSTC), coinciding with the launch of its sustainability framework. Ascott’s adoption of the GSTC Industry Criteria is an affirmation of its commitment to the gold standard for sustainable tourism. Lim adds, “Ascott has around 164,000 units today. We’re big – but not so big that there is no room for further growth.”