The Ascott Limited (Ascott), the lodging business unit wholly owned by CapitaLand Investment (CLI), announced a 28% year-on-year increase in fee-related earnings (FRE) to $246 million, up from $192 million in FY 2022.
The announcement was made during CLI’s Full Year 2023 financial results, which saw Ascott as a key contributor of FRE to CLI’s overall business.
Ascott also achieved the highest number of property openings, with nearly 9,600 units turning operational in the same year. Riding on a strong momentum of travel recovery, Revenue per Available Unit (RevPAU) grew 20% over 2022 from higher average daily rates and occupancies.
It said that 77 new properties across all brands were signed in 2023. The strong growth trajectory enabled Ascott to surpass its year-end target and secured 160,000 units earlier than expected in March.
“Ascott had a record year of fee earnings and property openings in 2023. The strong performance was underscored by our diverse portfolio of brands and strategic presence in new destinations,” said Mr Kevin Goh, Chief Executive Officer for Ascott and CLI Lodging.
“This is an important milestone to mark Ascott’s transformative journey to become a global leader in hospitality, as we celebrate 40 years of service this year.
“Harnessing our extensive network of third-party owners and in-market expertise, Ascott remains focused on driving asset light growth organically through management and franchise agreements.
“In 2023, 38% of new agreements signed were with existing owners, a demonstration of their confidence in us. At the same time, we are seeking out transformative deals which can accelerate our expansion.
“We will continue to build upon our portfolio of global brands to drive higher quality growth. This puts us well on track to achieve our target of more than $372 million in fee earnings by 2028.”
Riding on the momentum of a record growth year, Ascott is strengthening its top leadership team with new C-suite appointments. These appointments, it said, will bolster and capitalise operations, commercial, strategic planning, and hospitality design efforts.
They will be part of the Ascott Leadership Council, which is led by Mr Kevin Goh, Chief Executive Officer for Ascott and CLI Lodging.
With six years of experience with Ascott, Lee Ngor Houai has been appointed Chief Operating Officer in Europe, the Middle East, Africa (EMEA), South Asia, and China.
In his new role, Houai will be responsible for leading growth and overseeing operations in these key regions. With EMEA as an emerging market with high potential for Ascott, Houai will propel Ascott’s brand portfolio in the region to new heights.
On a global corporate level, Houai will take one on digitalisation, business insights and operational excellence, leading the drive for stronger alignment across Ascott’s global teams to ensure cross-country synergies for streamlined processes, resource optimisation, and seamless execution.
Houai said he will enhance Ascott’s regional brand presence and market share across its regional operational portfolio, which includes Ascott Park Place Dubai, Citadines Culture Village Dubai, Citadines Metro Central Dubai, Ascott Corniche Al Khobar, Somerset Downtown Al Khobar, Ascott Rafal Olaya Riyadh, Citadines Abha, Citadines Al Ghubrah Muscat, Somerset West Bay Doha, Somerset Al Mansoura Doha, Somerset Al Fateh Bahrain, Somerset Westview Nairobi, Somerset Maslak Istanbul, and Somerset Atyrau Kazakhstan.
“Ascott is tapping into our experienced leadership bench to lead the charge in our next phase of growth as a global integrated lodging operator. With our flex-hybrid hotel-in-residence model, Ascott will continue to break new ground to meet travel needs across all stay purposes globally. Having a strong senior leadership team is integral to us achieving this vision,” added Goh. – TradeArabia News Service
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