Ascott Exceeds 2019 Record Growth To Add Over 14,200 Units Globally In 2020 Despite Covid-19

Singapore - CapitaLand's wholly owned lodging business unit, The Ascott Limited (Ascott) has added a record of over 14,200 units across 71 properties globally for 2020. Despite COVID-19, this exceeds the number of units secured in 2019, marking a fourth consecutive year of record growth for Ascott. In China, Ascott has also achieved an 80% year-on-year growth in units compared to 2019^[1]. The new properties secured will boost Ascott's annual fee income by over S$27 million as they progressively open and stabilise.

Since October 2020, Ascott added more than 4,900 units across 23 properties. This includes over 3,800 units across 17 properties in China. Ascott will make its first foray into the city of Yangzhou while expanding in other cities such as Beijing, Chengdu, Chongqing, Guangzhou, Hangzhou, Shanghai, Shenzhen and Wuhan. Among the newly secured properties are two rental housing properties in Shanghai and Hangzhou, marking Ascott's increased presence in China's high growth rental housing sector. As China continues to urbanise, an estimated 252 million tenants will make up a RMB3 trillion rental market by 2025^[2]. Outside of China, Ascott has sealed contracts for over 1,000 new units across 6 properties. They are in markets such as Doha, Qatar; Manila, Philippines; Singapore; Sydney, Australia; as well as Binh Duong and Danang in Vietnam where Ascott will introduce its first lyf coliving property and first Citadines Connect business hotel in the country.

Mr Kevin Goh, CapitaLand's Chief Executive Officer for Lodging and Ascott's Chief Executive Officer, said: "COVID-19 has validated the resilience of Ascott's business model as property owners continue to sign new management and franchise contracts with us, allowing us to achieve our fourth consecutive year of record growth in 2020. Through these new contracts, we continue to build our future recurring fee income stream. In 2021, over 80 properties with about 17,000 units are slated to open across the world. This includes over 70 properties with more than 15,000 units in Asia Pacific which is expected to lead the global economic recovery. We will continue to look for opportunities to expand our presence through management contracts, franchises, strategic alliances, and stand ready to seize good investment opportunities."

Mr Goh added: "While we were not spared the short-term operational impact of COVID-19, we believe that the fundamental demand for lodging remains intact and will bounce back quickly once the global pandemic is brought under control. In the meantime, we continue to seek new opportunities amid the crisis. We have capitalised on Ascott's well-designed and spacious serviced apartments to tap on domestic demand while pursuing new businesses. Ascott's new businesses such as the 'Work in Residence' and 'Space-as-a-Service' initiatives have generated more than S$91 million^[3] in 2020. With the global roll out of vaccines and testing protocols to facilitate the gradual resumption of international travel, Ascott will emerge stronger and deliver greater value for our partners and guests."

Mr Tan Tze Shang, Ascott's Managing Director for China and Head of Business Development for China, said: "Ascott's business in China continues to lead our global expansion. We have achieved record growth in new units and about half of the properties opened globally are in China. In key cities, our properties such as Ascott Heng Shan Shanghai, Ascott Aden Shenzhen, Ascott IFC Guangzhou, and Raffles City Residence Beijing, have strong average occupancy rate of over 90%^[3]. In 2021, we are slated to open three lyf coliving properties in Hangzhou, Shanghai and Xi'an to cater to the fast-expanding demographic of millennial and millennial-minded customers. The first of our three rental housing properties in China is also slated to open in Hangzhou in 3Q 2021. These new lodging options will enable Ascott to expand our customer reach and product offerings to business partners in China."

Mr Tan added: "Ascott's expansion into the rental housing segment taps on the growing demand from young, mobile workers as well as returning students from abroad who are looking to rent quality fully furnished homes in the tier one and tier two cities on a long-term basis in China. We have also infused new technologies into the more traditional rental housing sector by enabling our guests to pay rent and utilities, submit requests and book facilities digitally to increase guest satisfaction and improve operational efficiency."

In 2020, Ascott opened 25 new properties adding over 3,900 units to its global inventory. This includes the opening of 10 properties with more than 1,800 units in China. In the last quarter of 2020, new properties were opened in Australia, China and Thailand. The new properties include Quest Ballarat Station, Quest Preston and Quest Wangaratta in Australia; as well as Citadines Yunlong Lake Xuzhou and Tujia Somerset Yunlong Lake Xuzhou in China.

Leveraging digital capabilities to support Ascott's growth

Amidst the COVID-19 situation, Ascott continued to leverage and upgrade its digital capabilities to support Ascott's growth, enhance its guests' experience and ensure their safety.

Ascott completed the migration of its customer relationship management and property management systems to a cloud enterprise solution. The move enables Ascott to increase operational efficiency and further enhance guest experience across its properties worldwide. The check-in process is shortened, and the creation of an automated workflow management system allows efficient tracking and management of operations such as housekeeping services in real-time. A new data analytics platform was also introduced to provide greater value for Ascott's corporate clients.

Ascott's service robot, Aria will be deployed to selected properties in Singapore in 2021. Aria is one of the contactless technologies that Ascott has introduced to its properties in China. Guests can call upon Aria to perform a suite of tasks such as concierge services, leading guests to the rooms or facilities, delivering clean laundry and packages, and refilling room supplies. Aria is also able to interface independently with the property's vending machine to bring guests their ordered items via a mobile app.

To minimise physical contact and reduce check-in time, Ascott has installed self check-in kiosk with facial recognition technology in selected properties in China and Singapore. In Singapore, Ascott has worked with Singapore Tourism Board to install an E-Visitor Authentication system at Ascott Orchard Singapore where guests can scan their passports at the kiosk and their data will be sent to the Immigration and Checkpoints Authority to verify the validity of their stay, providing seamless check-in. In addition, Ascott has launched an automated room key card verification system which enables guests in China to simply tap their room key cards on the card reader installed in the property's breakfast lounge and head straight for their breakfast without the need for its staff to verify the guests' breakfast entitlements manually.

Ascott's loyalty programme Ascott Star Rewards (ASR) tapped on numerous digital initiatives to support the company's expansion, increasing ASR members by 45% over 2019. The new Discover ASR mobile app is a one-stop 24/7 digital concierge, providing greater value and flexibility for ASR members to enhance their experience with Ascott. Through the app, ASR members can search for special deals and book their stay at about 200 participating properties in over 25 countries and more than 85 cities. Guests can also access their apartments via the app's digital key feature. Other ASR initiatives supporting Ascott's growth include the purchase of ASR points online, as well as the ASR Elite Status Match and CapitaStar-ASR Points Exchange which allow ASR members to gain more points or upgrade their membership tier.

Notes:

[1] Ascott achieves record high signing of over 5,600 units in China to date despite COVID-19

https://www.capitaland.com/international/en/about-capitaland/newsroom/news-releases/international/2020/oct/ascott-achieves-record-high-signings-of-over-5600-units-in-china-in-2020-despite-covid-19.html

[2] China Rental Housing Association.

[3] As at 31 December 2020.

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.

Joan Tan
Assistant Vice President, Corporate Communications
+65 6713 2864
The Ascott Limited