The Ascott Limited, the lodging business unit of Capitaland Investment, has announced an ambitious target to double its fee revenue to over $500 million in the next five years, surpassing its current FY2022 record-high of $258 million. The boosted earnings in FY2022 was largely due to record signings and property openings.

Ascott also revealed that it had achieved its goal of securing 160,000 units by 2023, boosted by 4,000 new units that was signed in the 1QFY2023. The lodging services will continue offering a product range that covers serviced residences, hotels, co-living and senior living, ranging from mid to luxury scale, with the fee revenue growth to be attributed by new property openings and signings at an expected annual net room growth rate of 8%-10%.

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Kevin Goh, CEO of Ascott and CLI Lodging, commented, “Thanks to our asset-light strategy, Ascott has doubled in units every five years, growing from about 20,000 units in 2008 to over 160,000 units today, leading to a positive financial impact. We will now be focusing on driving even stronger fee growth over the next five years.” Over 80% of the total units are said to be under management and franchise contracts, a marked increase from 43% ten years ago.

Goh further shared that to achieve their new growth target, the business will be securing more management and franchise contracts for prime properties that generate higher quality fees, in addition to leveraging its strong brand equity and direct distribution channels to deliver greater value to property owners and customers.

At the same time, this growth plan looks set to be bolstered by recent developments such as the opening of Citadines Connect City Centre hotel on Orchard Road, the acquisition of two properties in China and Netherlands valued at $190 million and the launch of the third co-living property in Singapore, respectively.

Undoubtedly, these efforts to expand and improve the existing assets and services of Ascott will prove to be an attractive proposition for investors and property owners alike. The ambitious five-year growth plan has the potential to take the lodging business to unprecedented heights in the years ahead.