Singapore: The Ascott Limited, a lodging business owned by CapitaLand, has grown the Oakwood portfolio by 20 per cent, expanding to 48 cities with a total of nearly 18,000 units.
Ascott acquired Oakwood Worldwide in 2022, which at the time added around 15,000 units to Ascott’s global portfolio.
Since the acquisition, Ascott has signed over 20 Oakwood projects and entered new locations including Busan (South Korea), Batam and Bali (Indonesia), Penang and Kota Kinabalu (Malaysia), Visakhapatnam, Chennai and Navi Mumbai (India), as well as Ha Long (Vietnam).
Moving forwards, Ascott will refresh the Oakwood brand and extend its offering to include city hotels and full-service resorts.
Kevin Goh, CEO for Ascott and CLI Lodging, said: “Ascott’s operational efficiency and commitment to disciplined growth are evident in the smooth integration of the Oakwood portfolio into Ascott’s operational framework. The uplift in revenue and improved margins are testament of Ascott’s ability to leverage pricing power and meet market demand, contributing to an overall enhanced financial performance of the Oakwood portfolio post-acquisition. With more operationally ready properties coming on-stream at a faster pace, we are seeing immediate contribution of the Oakwood portfolio to Ascott’s recurring fee income; which is in line with our aim to double fee earnings to more than S$500 million by 2028.”
Goh added: “Ascott will continue to pursue transformative deals which can accelerate our expansion and provide us with immediate access to new markets, diverse customer bases, and valuable synergies. The strategic benefits of inorganic expansion extend beyond incremental growth. They have empowered us to unlock economies of scale, streamline operations, and enhance overall competitiveness over the year. Coupled with our continued focus on organic signings of management and franchise contracts, we not only intend to keep pace with industry trends but to break new grounds and stay ahead, positioning Ascott as a global leader in hospitality. Ascott is on the cusp of a transformative journey as we mark our 40th anniversary this year. We look forward to gaining strong growth momentum, to owning the upswing with the rebound of global travel and tourism in the year ahead.”
Tan Bee Leng, Ascott’s managing director for brand and marketing, said: “Against the backdrop of the surge in bleisure travel, a portmanteau of business and leisure, we have harnessed Oakwood’s deep-rooted understanding of corporate travel, to kickstart a brand refresh that aligns with the needs of business travellers today. With the rise of telecommuting and flexible schedules, business travellers increasingly view work trips as opportunities to extend their stays for leisure purposes. The refreshed Oakwood brand seeks to balance our guests’ work commitments with their desire for personal wellness and enrichment when travelling, prioritising comfort above all else.”
From in-property amenities to enjoy the comforts of home, productivity tools to enable business connectivity, to thoughtfully-curated activities to seamlessly blend work and leisure, our refreshed Oakwood brand aims to address this growing market of business professionals who increasingly value holistic travel experiences. As more business travellers become more inclined to explore unique locations and cultural offerings, turning business trips into multifaceted experiences, our pipeline of Oakwood properties will be opening not just as serviced apartments catering to longer stay residents, but also as city hotels and in resort locations, targeting guests going on brief sojourns and weekend getaways.”
