Ascott Fast-tracks China Expansion Through Strategic Alliance With The Country’s Largest Construction Firm

Singapore – CapitaLand's wholly owned serviced residence business unit, The Ascott Limited (Ascott), continues its aggressive expansion by forging a strategic alliance with Dongfu Investment Development Corporation – a real estate subsidiary of China State Construction Engineering Company (CSCEC), China's largest state-owned construction and infrastructure builder. Through this partnership, Ascott will have the first right to manage apartments currently under development as well as future projects to be built by Dongfu Investment. Both parties will draw on each other's capabilities, resources, brands and sales network to expand in China.

Dongfu Investment's parent company, CSCEC, is ranked 37 amongst Fortune's global 500 companies with massive projects internationally from Singapore to United Arab Emirates and South America. Ascott's partnership with Dongfu Investment follows its recent alliances with fast-growing companies such as Alibaba's online travel site Alitrip and Tujia.com International, China's largest online apartment sharing platform equivalent to Airbnb, as well as leading developers such as Vanke and Yuexiu.

Mr Lee Chee Koon, Ascott's Chief Executive Officer, said: "Ascott is delighted to be the first international serviced residence company to form a strategic alliance with Dongfu Investment.

Ascott has forged strong alliances with industry leaders from land owners to property developers, construction firms, online platforms and tech companies. Our partners have chosen to collaborate with us due to Ascott's strong capabilities in managing award-winning serviced residences globally for the past over 30 years. These partnerships will allow Ascott to deepen our presence and build scale in key cities; expand our network to new gateway cities; broaden our reach to even more travellers as well as create new seamless O2O (Offline-to-Online and Online-to-Offline) experiences for our guests."

Ascott and Dongfu Investment kicked off this alliance with a management contract for the 148- unit Citadines Guoxitai Xi'an which is slated to open in 2018. The addition of Citadines Guoxitai Xi'an has further reinforced Ascott's leadership position as the largest international serviced residence owner-operator in China, with more than 14,000 units in 24 cities.

Mr Kevin Goh, Ascott's Managing Director for North Asia, said: "China is Ascott's largest market with the most number of properties. We have recorded three consecutive years of expansive growth in the country with more than 2,000 units added year on year. In 2015, we secured over 2,500 units across 14 new properties in China. We are positive that demand for quality serviced residences will continue to grow in China, riding on the increasing domestic travel especially in the first and second tier cities."

Mr Goh added: "Through our alliance with Dongfu Investment, we will be looking at expanding in cities such as Shanghai and Jinan, tapping on our partner's major commercial building projects across these cities. Our latest partnership with Dongfu Investment will widen Ascott's lead as we advance towards our target of 20,000 units in China by 2020." Citadines Guoxitai Xi'an is close to Xi'an's Hi-Tech Industries Development Zone where 1,000 multinational corporations including 40 Fortune 500 companies such as Samsung, Micron, Infineon and NEC are based. The serviced residence is a 10-minute drive to the city centre. Part of a mixed-used development that also includes an office tower as well as retail outlets, Citadines Guoxitai Xi'an will offer guests a choice of studios to two-bedroom apartments as well as gymnasium, breakfast area, children's playroom, launderette and yoga room.

Following the recent opening of Ascott Central Wuxi, at least 10 properties are slated to be opened this year in various Chinese cities including Beijing, Chongqing, Shenyang, Tianjin and Xiamen.

About The Ascott Limited

Since pioneering Asia Pacific's first international-class serviced residence with the opening of The Ascott Singapore in 1984, Ascott has grown to be a trusted hospitality company with more than 940 properties globally. Headquartered in Singapore, Ascott's presence extends across more than 220 cities in over 40 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa, and the USA.

Ascott's diversified accommodation offerings span serviced residences, co-living properties, hotels and independent senior living apartments, as well as student accommodation and rental housing. Its award-winning hospitality brands include Ascott, Citadines, lyf, Oakwood, Quest, Somerset, The Crest Collection, The Unlimited Collection, Preference, Fox, Harris, POP!, Vertu and Yello; and it has a brand partnership with Domitys. Through Ascott Star Rewards (ASR), Ascott's loyalty programme, members enjoy exclusive privileges and offers at participating properties.

A wholly owned business unit of CapitaLand Investment Limited, Ascott is a leading vertically-integrated lodging operator. Harnessing its extensive network of third-party owners and in-market expertise, Ascott grows fee-related earnings through its hospitality management and investment management capabilities. Ascott also expands its funds under management by growing its sponsored CapitaLand Ascott Trust and private funds.

For more information on Ascott's industry record of 40 years and its sustainability programme, please visit www.discoverasr.com/the-ascott-limited. Connect with us on Facebook, Instagram, TikTok and LinkedIn.

About CapitaLand Investment Limited

Headquartered and listed in Singapore, CapitaLand Investment Limited (CLI) is a leading global real estate investment manager (REIM) with a strong Asia foothold. As at 30 September 2023, CLI had S$133 billion of real estate assets under management, and S$90 billion of real estate funds under management (FUM) held via six listed real estate investment trusts and business trusts, and more than 30 private vehicles across Asia Pacific, Europe and USA. Its diversified real estate asset classes cover retail, office, lodging, business parks, industrial, logistics and data centres.

CLI aims to scale its FUM and fee-related earnings through fund management, lodging management and its full stack of operating capabilities, and maintain effective capital management. As the investment management arm of CapitaLand Group, CLI has access to the development capabilities of and pipeline investment opportunities from CapitaLand's development arm.

As a responsible company, CLI places sustainability at the core of what it does and has committed to achieve Net Zero carbon emissions for scope 1 and 2 by 2050. CLI contributes to the environmental and social well-being of the communities where it operates, as it delivers long-term economic value to its stakeholders.

Visit http://www.capitalandinvest.com/ for more information.

Joey Wong
Manager, Group Communications
The Ascott Limited