Industry Update
Press Release22 February 2016

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

Set to widen leadership position in China after recording expansive growth of 14 properties and over 2,500 units in 2015

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The Ascott Group

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.

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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.

Related Brand

Citadines

When it comes to personalised conveniences for savvy and vibrant individuals on the go, nothing comes close to Citadines Apart’hotel. An oasis of calm in key bustling cities, you get to decide on a range of services and amenities that best complements your lifestyle.
brand information
Other Brands operated by The Ascott Limited
Ascott The Residence
Citadines Connect
Fox Hotels
Harris Hotels
LYF
POP! Hotels
Préférence Hotels
Quest Apartment Hotels
Somerset Serviced Residence
The Crest Collection
Vertu Hotels
Yello Hotels

About The Ascott Limited

The Ascott Limited is a Singapore company that has grown to be one of the leading international lodging owner-operators. Ascott's portfolio spans more than 180 cities across over 30 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa and the USA.

Ascott has about 70,000 operating units and over 48,000 units under development, making a total of about 118,000 units in over 700 properties.

The company's serviced residence and hotel brands include Ascott The Residence, he Crest Collection, Somerset, Quest, Citadines, lyf, Préférence, Vertu, Harris, Citadines Connect, Fox, Yello and POP!.

Ascott, a wholly owned subsidiary of CapitaLand Limited, pioneered Asia Pacific's first international-class serviced residence with the opening of The Ascott Singapore in 1984. Today, the company boasts over 30 years of industry track record and award-winning brands that enjoy recognition worldwide.

Ascott's achievements have been recognised internationally. Recent awards include DestinAsian Readers' Choice Awards 2020 for 'Best Serviced Residence Brand'; World Travel Awards 2019 for 'Leading Serviced Apartment Brand' in Asia, Europe and the Middle East; Business Traveller Asia-Pacific Awards 2019 for 'Best Serviced Residence Brand'; Business Traveller China Awards 2019 for 'Best Luxury Serviced Residence Brand'; and TTG China Travel Awards 2019 for 'Best Serviced Residence Operator in China'. For a full list of awards, please visit https://www.the-ascott.com/ascottlimited/awards.html.

About CapitaLand Limited

CapitaLand Limited (CapitaLand) is one of Asia's largest diversified real estate groups. Headquartered and listed in Singapore, it owns and manages a global portfolio worth S$131.9 billion as at 31 December 2019. CapitaLand's portfolio spans across diversified real estate classes which includes commercial, retail; business park, industrial and logistics; integrated development, urban development; as well as lodging and residential. With a presence across more than 200 cities in over 30 countries, the Group focuses on Singapore and China as its core markets, while it continues to expand in markets such as India, Vietnam, Australia, Europe and the USA.

CapitaLand has one of the largest real estate investment management businesses globally. It manages seven listed real estate investment trusts (REITs) and business trusts as well as over 20 private funds. Since it pioneered REITs in Singapore with the listing of CapitaLand Mall Trust in 2002, CapitaLand's REITs and business trusts have expanded to include Ascendas Real Estate Investment Trust, CapitaLand Commercial Trust, Ascott Residence Trust, CapitaLand Retail China Trust, Ascendas India Trust and CapitaLand Malaysia Mall Trust.

Visit www.capitaland.com for more information.

Contact
Joey Wong
Manager, Group Communications
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