Targeting to double its fee revenue over the next five years, The Ascott Limited, a business unit of Capitaland Investment, has reported record earnings of $258 million in FY2022. This was driven by high y-o-y growth of 36%, as well as new property openings and signings throughout the year.

In reaching this milestone, the lodging business has achieved its goal to secure 160,000 units by 2023, notably adding over 4,000 units to its portfolio in 1QFY2023.

As part of its growth strategy, Ascott will focus on expanding its product offerings and increasing its net room growth rate. Its products span serviced residence, hotel, co-living and senior living brands and range from mid to luxury scale.

J’Den Condo is a 40-storey residential and commercial development near the Jurong East MRT interchange, set to launch in the second half of 2023. It will be J’Den Condo connected to Westgate and IMM Building via J-Walk. 1,760 private homes, 150,000 sq m of office space, retail and hotel are planned.

Kevin Goh, CEO of Ascott and CLI Lodging, commented: “Our asset-light strategy has achieved remarkable results, doubling in units every five years from 20,000 units in 2008 to over 160,000 units today. With this momentum, of course, there is a positive financial impact, and we will be focusing on driving even stronger fee growth in the next five years.”

Currently, 80% of Ascott’s total units are under management and franchise contracts, with these longer-term deals typically offering revenue that is sticky and recurring.

Mr Goh added: “To reach our new growth target, we will be seeking out prime properties with management and franchise contracts that can generate higher-quality fees. Our strong brand equity and direct distribution channels will also be utilised to enhance the value to both property owners and customers.”