CapitaLand Limited’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), has made its first foray into the popular tourist destinations of Pattaya in Thailand and Cebu in the Philippines by securing five new contracts to manage 875 apartment units. With 14 management contracts signed in Southeast Asia this year, Ascott has added over 2,700 serviced residence units in the region; more than triple the number of units added in the same region for the whole of 2014.
Lee Chee Koon, Ascott’s Chief Executive Officer, commented: “We have ramped up our expansion in Southeast Asia as we see strong growth potential in the long-term. With more than 13,000 apartment units in 73 properties across eight countries in Southeast Asia, over 30% of Ascott’s global footprint is now concentrated in this fast-growing region.
Citadines Jomtien Beach Pattaya will target expatriate workers as well as leisure travelers.
“Southeast Asia is shaping up to be one of the most vibrant and attractive markets for foreign investors – with a young population driving domestic demand, growing export figures and various economic policies in place to attract foreign capital,” he continued. “The upcoming ASEAN Economic Community will not only boost economic integration in the region, it will also transform Southeast Asia into an economic powerhouse with a population of more than 600 million.”
The new management contracts in Pattaya and Cebu will strengthen Ascott’s position as the largest international serviced residence owner-operator in Thailand and the Philippines. Ascott has more than 2,800 units across 16 properties and 1,600 units in eight serviced residences respectively in the two countries. The four new properties in Thailand – Citadines North Pattaya, Citadines Central Pattaya, Citadines Jomtien Beach Pattaya and Somerset Wong Amat Beach Pattaya – will be ready to welcome guests from 2018 onwards while Citadines Cebu City is slated to open in 2019.
Mr. Lee added, “Ascott has been expanding beyond the capital cities to other areas with significant growth opportunities for serviced residences. For instance, Pattaya is a major city in Thailand’s Eastern Seaboard region with many multinational companies while Cebu is the second major business capital in the Philippines after Manila. Both are also popular tourist destinations.
“This year, we have also secured properties in Jakarta and Yogyakarta in Indonesia; Kota Kinabalu, Nusajaya and Miri in Malaysia; Bangkok and Sri Racha in Thailand as well as Binh Duong province and Ho Chi Minh City in Vietnam. Ascott is also present in the Southeast Asian cities of Yangon, Myanmar and Vientiane, Laos. We will continue to make inroads into new cities with strong growth potential and deepen our presence in the world’s capital cities to achieve our target of 80,000 units globally by 2020.”
The four new properties in Pattaya will cater to different segments of corporate and leisure travellers and they signal Ascott’s expansion into its third city in Thailand after Bangkok and Sri Racha. The 300-unit Citadines North Pattaya will appeal to corporate travellers from the nearby major industrial estates for automobile, shipping and metal companies while visitors who enjoy Pattaya’s bustling nightlife options will appreciate the prime location of the 150-unit Citadines Central Pattaya.
The 95-unit Citadines Jomtien Beach Pattaya will host expatriates working at the nearby industrial estate in Rayong as well as leisure travellers at the popular Jomtien beach. In the luxury resort and residential area, the 150-unit Somerset Wong Amat Beach Pattaya will cater to corporate guests on extended stay and travellers with families looking for exclusivity and tranquillity, offering a nice sea view from the serviced residence.