Serviced apartment operator The Ascott has seen its revenue per unit “pacing close” to pre-Covid levels in recent months.
The company, which is part of CapitaLand Investment (CLI) and owns brands such as Citadines and co-living specialist Lyf, said the recovery of the accommodation sector had “accelerated” following the lifting of Covid travel restrictions in the second quarter of 2022.
Kevin Goh, CEO of The Ascott and CLI Lodging, added: “At the end of the third quarter, Ascott’s revenue per available unit was pacing close to pre-pandemic levels in 2019.
“We expect our serviced residences, which have the flexibility to cater to both short and long-stay customers, to further bolster revenues. Beyond the initial travel rush, growth of the hospitality sector is on a positive and sustainable trajectory.”
The Ascott said it would continue to focus on “asset light” growth with 80 per cent of its current properties under management and franchise contracts. This compares with just 39 per cent of properties in 2011.
The company has significantly grown its portfolio through acquisitions, such as its purchase this summer of rival operator Oakwood. It has previously snapped up Quest Apartments Hotels and Tauzia Hotel Management, as well as making a “substantial investment” in Synergy Global Housing in 2017.
Following these moves, The Ascott currently has 150,000 units across 900 properties in 200-plus cities, which makes it one of the three largest serviced apartment operators globally. The company is currently “on track” to achieving its target of 160,000 units worldwide by 2023.
“Ascott has a resilient and differentiated business model, and we will continue to build on our strength as an integrated lodging player across the real estate value chain,” added Goh.
“Our portfolio of brands caters to different types of travellers, from short stay to long-term guests and our strategy is to focus on unlocking their full value potential.”