The Ascott Limited, a leading lodging business that is wholly owned by CapitaLand Investment, has announced that it achieved a record year of fee earnings in 2023 at $246 million – a 28% year-on-year increase that saw a stark rise from its $192 million in FY 2022. Adding to this momentum, the brand also achieved its highest number of property signings yet, with nearly 9,600 units turning operational and 77 new properties across all brands also having been signed during the 2023 financial year.
Ascott’s strength was also displayed through a notable growth in its revenue per available unit (RevPAU), which went up 20% from 2022, with higher average daily rates and occupancies. These figures not only saw the company surpass its year-end target – also securing 160,000 units earlier than expected, in March – Ascott was also named a key contributor to CLI’s overall business during CapitaLand Investments’s full year 2023 financial results report.
Expanding upon this wave of growth, the company has also strengthened its C-suite leadership team with a number of new hires, including the appointment of Lee Ngor Houai as its COO in Europe, the Middle East, Africa (EMEA), South Asia, and China. In his new role, Houai – who has six years of experience with the brand – 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 is taked with propelling Ascott’s brand portfolio in the region to new heights. On a global corporate level, Houai is set to take on the brand’s 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.
“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. 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,” said Mr Kevin Goh, chief executive officer for Ascott and CLI Lodging.
Ascott’s regional operational portfolio 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.
