Ascott has secured seven new contracts in China, taking its total portfolio in the country to more than 100 properties.
The Singapore-based serviced apartment operator has penned deals for its first properties in Kunming and Yichang, as well as additional locations in Chongqing, Dalian, Shenzhen and Xuzhou, comprising more than 1,300 apartments.
“China remains Ascott’s biggest market and we are excited to be surpassing our 100th property milestone in China,” Lee Chee Koon, Ascott’s CEO. “Chinese are amongst Ascott’s top customers at our properties globally with revenue surging by 35% year-on-year. Awareness of Ascott has also grown significantly in China. In 2016, about 62% of our guests in China are Chinese.
“With close to 19,000 units in 104 properties across 29 Chinese cities, Ascott will achieve our target of 20,000 units in China well ahead of 2020. With this momentum, we are confident of exceeding our target of 80,000 units globally by 2020,” he added.
Of the seven new serviced residences, the 92-unit Tujia Somerset Garden City Chongqing is already operational while the 161-unit Ascott Yulian Plaza Dalian, 198-unit Citadines Gaoke Liangjiang Chongqing, 192-unit Citadines Three Gorges Yichang and 244-unit Somerset Q Plex Shenzhen are all scheduled to open in 2018.
The 150-unit Citadines Dianchi Time Plaza Kunming and 287-unit Tujia Somerset Yunlong Lake Xuzhou are then expected to launch in 2019.
In addition, Ascott has now listed about 15,000 serviced apartments on Alibaba’s online travel platform Fliggy, including properties in more than 20 destinations popular with outbound Chinese travellers, such as Singapore, Bangkok, Tokyo, Paris and London.
“China’s rising incomes are driving domestic travel and making it the world’s biggest outbound travel market. Besides boosting our number of properties in China, Ascott is sharpening our competitive edge by having a stronger online presence. We now have one of the largest serviced apartment listings on Fliggy, which has more than 200 million users. Our penetration of the Chinese market both offline and online is already contributing to Ascott’s business worldwide,” Lee added.
The seven new signings add to the contracts signed earlier this year for new Ascott properties in cities including Changsha, Shenzhen, Tianjin and Wuhan.