Ascott expands to Laos and Indonesia

The agreements are for an operating serviced residence in Vientiane that will be rebranded as a 116-unit Somerset Vientiane in the fourth quarter of 2014, and a 194-unit Citadines Kuta Beach Bali that is scheduled to open in August this year.

According to Lee Chee Koon, Ascott’s chief executive officer, these franchise agreements mark a new milestone for Ascott.

“Since opening our first property in Singapore 30 years ago, Ascott has grown to be the world’s largest international serviced residence owner-operator. We have built sound hospitality management systems, an extensive sales and distribution network, strong brand recognition and loyalty globally,” said Lee.

Lee added that franchise will be one of Ascott’s growth drivers for the future.

“It will allow us to build our scale rapidly in our existing markets and expand into new markets. Through the franchise agreements, we have added two more cities to our portfolio to reach 85 cities worldwide. Together with investments, management contracts and strategic alliances, franchise will bring us closer to achieving our target of 40,000 apartment units globally by 2015,” he added.

Lee further explained that while most of Ascott’s guests are expatriates and business travellers on extended stay, more leisure travellers are also choosing to stay in Ascott’s serviced residences.

“Bali is a popular destination for holiday, meetings and conferences. With Citadines Kuta Beach Bali, our guests can enjoy the familiar homely environment that Ascott provides in another renowned destination. It will also further reinforce Ascott’s position as the largest international serviced residence owner-operator in Indonesia with over 2,400 apartment units across 11 properties in Jakarta, Surabaya and Bali,” he added.

Ascott awarded the franchise for Somerset Vientiane to a subsidiary of LCD Global Investments Ltd, a real estate and hospitality group listed on the Singapore stock exchange.

Under the agreement, the serviced residence will be managed by Ascott for the first two years to ensure that it is refurbished to Somerset brand standards before transitioning to a franchise arrangement.

The franchise for Citadines Kuta Beach Bali was awarded to PT Menara Permata Propertindo. Ascott is also managing Somerset Kencana Jakarta for the company and the property is slated to open in 2015.

The Ascott Limited is a Singapore company that has grown to be the world's largest international serviced residence owner-operator. It has over 23,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 11,000 units which are under development, making a total of more than 34,000 units in over 200 properties.