WORLDWIDE: Ascott Residence Trust (ART) has released figures to show its long stay properties are aiding its strong recovery.
The results show ART has had its highest quarterly increase in revenue per available unit (REVPAU) with a REVPAU of 85 per cent in the second quarter of this year, compared with the second quarter since 2020.
The strong performance is an indication of a higher average daily rate and occupancy rate, which has grown around 50 per cent in the first quarter of this year, and 70 per cent in the second quarter of this year.
Ascott Residence Trust’s US, UK, Singapore and Australia properties had the strongest quarter-on-quarter growth in REVPAU with a 60 per cent increase in the first half of the year compared with 2021.
ART’s revenue for the first half of this year has increased by 45 per cent to S$267.4 million compared with the first half of last year.
This has been put down to the higher revenue from ART’s expanded portfolio of long-stay assets which, as well as student accommodation and rental housing, includes the new lyf one-north Singapore which opened in April.
Bob Tan, chairman of Ascott Residence Trust Management Limited and Ascott Business Trust Management said: “As the global travel recovery continues, our serviced residences and hotels have contributed more growth income. This builds upon the steady income stream from our strong foundation of longer-stay assets. ART’s diversified and resilient portfolio remains poised for further growth. In addition, our robust financial position gives us the capacity to achieve our asset allocation target of 25-30 per cent in longer-stay assets and 70-75 per cent of our portfolio in serviced residences and hotels.”
Serena Teo, chief executive officer of Ascott Residence Trust Management Limited and Ascott Business Trust Management said: “As Asia Pacific’s largest hospitality trust, ART is a key barometer of the sector’s performance. Our quality hospitality properties remain highly sought-after by corporate and leisure guests, and the pent-up demand has enabled ART to achieve our highest increase in REVPAU over the last quarter. We are seeing strong forward bookings at our properties and we expect this demand to sustain. With our geographically diverse network of serviced residences and hotels in key gateway cities and large domestic markets, ART has the agility to price our room rates dynamically to abate rising utility and labour costs, and better capture growth opportunities. As our properties cater mainly to long-stay guests, we have lower manning requirements and leaner cost structures. ART’s stable income base is expected to cushion the impact from recessionary concerns, rising inflation and macroeconomic uncertainties.”
