China: The Ascott Limited has reached 12,000 apartment units in China by securing contracts to manage five more properties with 1,000 apartment units.
The 200-unit Citadines Xingqing Yinchuan, 150-unit Somerset Xingqing Yinchuan and 164-unit Somerset Riverside Changsha mark Ascott’s entry into the high-growth Chinese cities of Yinchuan and Changsha. Ascott is the first international serviced residence owner/operator to enter these cities. All three properties are slated to open in 2018.
Ascott also plans to open its second property in Shenyang – the 330-unit Somerset Olympic Centre Shenyang in 2015, and Ascott’s fifth property in Xi’an – the 156-unit Somerset Xindicheng Xi’an in 2016.
Lee Chee Koon, Ascott’s chief executive officer, said: “China is Ascott’s fastest growing market. As the world’s second largest economy, it continues to present tremendous opportunities. Urbanisation, increasing business activities and rising domestic affluence in key Chinese cities fuel strong demand for our serviced residences. Since bringing Ascott from our home base in Singapore to China in 1998, we have grown to become China’s largest international serviced residence owner-operator with 69 properties across 23 cities. This year alone, we have added some 2,600 apartment units in China. Having crossed our target of 12,000 apartment units ahead of 2015, we are now aiming at 20,000 units in China by 2020. This is in line with our global target of 80,000 apartment units by 2020.”
Kevin Goh, Ascott’s managing director for North Asia, said: “Besides deepening our presence in China’s first-tier cities, we are expanding into high-growth cities such as Yinchuan and Changsha. Yinchuan is a rapidly developing tourism and business hub with abundant cultural attractions and natural resources in Ningxia in Northwest China. The city is the venue for the bi-annual China-Arab States Expo that facilitates trade between China and the Arab countries. As the capital city of Hunan Province, Changsha’s economy and foreign direct investment in 2013 grew 12% and 14% respectively. As of end 2013, 49 Fortune 500 companies have set up their branch offices or launched projects in the city. Changsha is also one of the most popular tourist destinations in central China. As the first international serviced residence operator to enter Yinchuan and Changsha, Ascott will enjoy first-mover advantage to capture the city’s significant untapped demand for spacious, secure and homely accommodation.”
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