Although the travel and lodging industry in 2021 is still affected by the epidemic environment, Ascott Limited ("Ascott"), a world-renowned serviced residence and hotel owner and accommodation operator under CapitaLand Investments, is still struggling to win 30 new management contracts in China throughout the year, bringing the number of apartment units and hotel rooms managed and reserved by Ascott in China to exceed the 40,000 mark.
At the same time, Ascott not only built another milestone in the Chinese market, but also ushered in a booming global business layout – a total of 72 new management projects were added around the world, and the scope of the territory was expanded to Boao and Sanya in China, Yaoundé, the capital of Cameroon, Patong Pariaman and Taheng City (Tasimaya) in Indonesia, and Lagos, the capital of Nigeria, with 15,100 new units.
While actively expanding new projects, Ascott's reserve properties have been opened to the market. In 2021, more than 8,200 units of Ascott were operational, setting a record for the highest annual opening in the world since the establishment of the Group. A total of 18 new properties were opened in China, the number of which reached a new high, the highest in the past year. At present, Ascott has put into operation 85 properties in China, totaling more than 16,400 units. It is expected that by the end of 2022, ascott China is expected to operate more than 100 serviced residences and hotels.
Mr Ng, Chief Executive Officer of CapitaLand Investments, said, "Despite the spread of COVID-19, the number of properties managed by Ascott will maintain strong growth momentum in 2021. Five consecutive years of record growth have strengthened Ascott's market leadership as a globally renowned travel operator, leading us to achieve a grand strategy of 160,000 properties worldwide by the end of 2023. The number of properties opened in 2021 is also a record, and we are ready for a recovery in tourism. In 2022, Ascott will continue to focus on an asset-light strategic model of delegated management and franchising to achieve global growth, while accelerating the expansion of our global membership loyalty program, Yaxing club, to strengthen the connection with corporate customers and help operations through technology, so that we can stand out in the future market competition and better serve our guests. ”
Mr Chan Chi-sang, Managing Director of Ascott China, said: "Despite the environmental impact, the number of ascott contracts signed in China this year still achieved an annual growth of 20%, and the number of new properties opened almost doubled compared with the same period last year. This is inseparable from Ascott's strategy of deeply cultivating the Chinese market. In the future, Ascott will continue to cultivate the high-end travel market in the first- and second-tier core cities, based on the three well-known brands of 'Ascott', 'Citadines' and 'Somerset', and link up with the shared apartment brand 'lyf' customized and managed by the new generation of travelers, the long-term rental apartment brand 'Yayu' carefully created for the Chinese market, the hotel brand 'Citadines Connect' tailored for business travelers and the elderly serviced apartment brand' Delta Court' continues to expand the scale of its management contracts and franchise businesses, seizing the opportunity to move towards the goal of managing 60,000 serviced residences and hotel units in China. ”
Actively expand the "circle of friends" and new tracks in the field of Rio Tinto long-term rental
In 2021, Ascott's newly signed projects involved 15 cities in China, located in Beijing, Shenyang, Tianjin, Hefei, Wuxi, Ningbo, Shanghai, Wuhan, Xi'an, Boao, Guangzhou, Haikou, Sanya, Shenzhen and Zhuhai, covering a number of brands including the first business hotel brand in China, "Citadines Connecting Hearts" and the elderly service apartment brand "Delta", and the brand matrix was initially formed, achieving the full blossoming of multiple product lines penetrating the old, middle and young.
Looking at Ascott's contracted projects this year, more than half of the cooperation with state-owned enterprises has reached. The reason for this is inseparable from the market's recognition of Ascott's brand strength and excellent operational capabilities. Among them, it is worth mentioning that ascott and Shanghai Waigaoqiao Free Trade Zone New Development Co., Ltd. jointly created the largest property of the "Yayu" brand, Shanghai Yayu Long-term Rental Apartment (Waigaoqiao) officially signed a contract in December 2021, with a signed number of units of 1,412 units.
Founded in 2020, Ascott is a long-term rental apartment brand carefully created by Ascott for the Chinese market and currently manages and reserves more than 2,300 apartment units in three cities: Shanghai, Hangzhou and Xi'an. As soon as its first property, Hangzhou HedayaYu Long-term Rental Apartment (Xiasha), was launched, it attracted the interest of a large number of young people in the block with its precise brand positioning, professionalism, safety and high cost performance, and won the recognition and support of the local talent office, becoming the preferred object of housing subsidy policies for local talents.
In the future, Ascott will continue to strengthen in-depth cooperation with major state-owned enterprises from the perspective of multi-brand, work hand in hand to create a good business ecology for win-win cooperation, and accelerate the long-term rental field to achieve curve overtaking, so as to provide quality accommodation for young talents living and working in areas with crowds and industries, convenient transportation and perfect supporting facilities.
Aggregate radiation effect, and then book performance stories
The opening projects in FY2021 are located in Beijing, Tianjin, Shanghai, Hangzhou, Nanjing, Wuxi, Guangzhou and Zhuhai. It is not difficult to see that Ascott's business in China is still focused on the five core urban agglomerations centered on Beijing, Shanghai, Guangzhou, Chengdu and Wuhan. The opening of the first lyf shared apartment in China and the first Yayu long-term rental apartment marks that Ascott continues to strengthen its leading edge, attaches importance to the iterative renewal of product lines and focuses on young customers. The diversification of products will further accelerate Ascott's layout in China, achieve cross-regional and cross-circle development, achieve scale linkage and synergy effects, and benefit different customer groups.
Market recognition brings impressive performance. Compared with 2020, Ascott's total operating income in China increased by 21% in 2021, the average occupancy rate in first-tier cities such as Beijing, Guangzhou, Shanghai and Shenzhen exceeded 80%, and the long-term income increased by 14.9% year-on-year. Ascott Guangzhou ECI, Guangzhou ETC Yuexiu Xingting Apartment and Somerset Hongkou Bund Serviced Shanghai have rapidly exceeded 60% in occupancy after three months of operation.
"Whether it's because of reasonable functional arrangements and space planning, or the professional services that are at home and at home, Ascott's properties have always been popular with domestic and foreign long-term residents. At present, the national long-term stay turnover accounts for 65%, and long-term residents have become an important part of Ascott's customer base in China. At the same time, this phenomenon also feeds back into Ascott, giving us a unique level of resilience and resilience that hotels cannot match. Chen Zhishang added.
In 2021, Ascott's global loyalty programme, Ascott Global Membership, Yaxing Club, also ushered in new developments: the number of global Yaxing members exceeded 2 million, an increase of 39% year-on-year. Membership earnings exceeded S$42.13 million. In China, Ascott's official WeChat Booking Mini Program is officially launched. This move has achieved the segmentation of the Chinese market, which can more easily interact with Chinese users, and achieve accurate access to individual properties or preferential activities in China, so that member benefits can be implemented.
It has won a number of awards and enhanced brand influence
In 2021, The Ascott Group became the biggest winner of the World Travel Awards, winning a total of 28 awards. Ascott Limited was awarded the 2021 Global Serviced Apartment Leading Brand, the 2021 China Serviced Apartment Leading Brand, and the 2021 Hong Kong Serviced Apartment Leading Brand. In addition, Ascott was named 'Best Serviced Residence Group in Asia Pacific' 2021 Readers' Choice (for six consecutive years) and the Business Traveller Awards for 18 consecutive years, including 'Best Serviced Residence Brand' in Asia Pacific 2021 and "Best Serviced Residence Company" in the UK.
Ascott has also won a number of accolades in the authoritative appraisal of the domestic industry, including the "Best Serviced Apartment Operator in China" by TTG China for the 14th consecutive year, the "Best Serviced Apartment Operator in China" by the China Hotel Starlight Awards for the 15th consecutive year, and the "Most Popular Serviced Apartment Brand in China" by the China Hotel Golden Pillow Awards for the 13th consecutive year.
Upstream journalist Gu Li intern Li Zhijiao