Ascott drives China expansion with country’s largest construction company
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Ascott, the Singapore-based serviced apartment company, has taken a major step forward in its Chinese expansion strategy by forging a strategic alliance with Dongfu Investment Development Corporation, a subsidiary of China’s largest state-owned construction company, CSCEC.
Through this partnership, Ascott will be given the first right to manage apartments currently under development as well as future projects to be built by Dongfu Investment.
And the alliance has kicked off with the signing of a management contract for the 148-unit Citadines Guoxitai Xi’an, which is scheduled to open in 2018.
“Ascott is delighted to be the first international serviced residence company to form a strategic alliance with Dongfu Investment,” said Lee Chee Koon, Ascott’s CEO. “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… experiences for our guests,” he added.
Ascott is already China’s largest serviced apartment operator, with more than 14,000 units in 24 cities. In 2015, the company signed another 14 properties comprising more than 2,500 keys, and it is aiming to reach an inventory of 20,000 apartment units in China by 2020.
Following the recent opening of Ascott Central Wuxi, at least 10 more Chinese properties are scheduled to open in 2016 in cities including Beijing, Chongqing, Shenyang, Tianjin and Xiamen.
“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,” said Kevin Goh, Ascott’s managing director for North Asia.
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