Following 2022’s record-breaking S$258 million in fee-related earnings (FRE), member of CapitaLand Investment (CLI) The Ascott Limited (Ascott) announced a staggering 28% year-on-year jump to S$331 million in FY 2023, showcasing remarkable resilience and strategic insight. With this increase, CLI’s financial fortunes are solidified and Ascott’s crucial role inside the empire’s prosperity is solidified.
Unprecedented Expansion and Revenue Milestones
The year 2023 was a pivotal period for Ascott, as the company opened nearly 9,600 units across the world, an expansion that underscores its relentless growth strategy and its ability to leverage the renewed vigor in the travel industry. Revenue per Available Unit (RevPAU) surged 20% over the previous year, as a result of a surge in average daily rates and occupancies, catapulting Ascott into a greenfield position in the market.
Strategic Growth and Visionary Leadership
The company’s most aggressive and transformative phase of expansion included the signing of 77 new properties, pushing numbers beyond the initial targets and marking 160,000 units ahead of schedule. “Ascott had a record year of fee earnings and property openings in 2023. The strong performance was underscored by our diverse portfolio of brands and strategic presence in new destinations. This is an important milestone to mark Ascott’s transformative journey to become a global leader in hospitality, as we celebrate 40 years of service this year. Harnessing our extensive network of third-party owners and in-market expertise, Ascott remains focused on driving asset light growth organically through management and franchise agreements. In 2023, 38% of new agreements signed were with existing owners, a demonstration of their confidence in us. At the same time, we are seeking out transformative deals which can accelerate our expansion. We will continue to build upon our portfolio of global brands to drive higher quality growth. This puts us well on track to achieve our target of more than S$500 million in fee earnings by 2028,” noted Mr. Kevin Goh, CEO, Ascott and CEO-Designate, CLI Lodging.
Bolstering Leadership for Future Endeavors
With its milestones translating into an exponential growth trajectory, Ascott has secured critical C-suit appointments that will help the company drive enhanced operations, commercial strategies, planning, and hospitality design. These new enablers will join the Ascott Leadership Council to multiply the business in elevating itself to be a global integrated lodging operator.
Leadership team highlight
- Mr. Lee Ngor Houai as Chief Operating Officer for Europe, Middle East, Africa (EMEA), South Asia, China, Ascott. Leading growth and managing the operations in these key markets, Mr. Lee spearheads Ascott’s expansion as the world’s largest international lodging owner-operator.
- Ms. Tan Bee Leng Chief Commercial Officer, Ascott. Ms. Tan leads Ascott’s commercial strategies to drive revenue generation, brand enhancement and digital innovation as traveler requirements undergo significant changes.
- Ms. Wong Kar Ling Chief Strategy Officer, Ascott. Ms. Wong is responsible for Ascott’s global strategy to propel growth, driving key strategic initiatives such as capital recycling, mergers and acquisitions and partnerships.
- Mr. Leong Teng Wui Chief Design & Technical Officer, Ascott. Mr. Leong has been instrumental in pushing the boundaries in design innovation and sustainability in alignment with Ascott’s commitment to environmentally friendly hospitality solutions.
- Ms Beh Siew Kim Chief Financial & Sustainability Officer, Lodging, CapitaLand Investment, Managing Director, Japan and Korea, Ascott. In addition to overseeing the finance, treasury, investor relations and sustainability functions of Ascott, Ms Beh drives the business, operations and growth in Japan and Korea.
- Ms Serena Lim Chief Growth Officer, Ascott. In leading Ascott’s global business development team to drive and manage the company’s growth in management and franchise contracts globally, Ms Lim is responsible for unearthing continued opportunities to extend Ascott’s global footprint across key growth markets.
- Ms Serena Teo Chief Executive Officer, CapitaLand Ascott Trust. With an asset value of S$8.7 billion as at 31 December 2023, CapitaLand Ascott Trust is the largest lodging trust in Asia Pacific. Ms Teo is responsible for leading the strategic planning and implementation of investment and operational strategies and also oversees the asset management, finance, investor relations and sustainability functions.
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- Mr Mak Hoe Kit Managing Director, Lodging Private Equity Funds, CapitaLand Investment. Mr Makis responsible for driving the growth of private equity investment and fund management for CapitaLand Investment’s lodging business. This includes the establishment and expansion of lodging private funds such as CapitaLand Ascott Residence Asia Fund II, Ascott Serviced Residence Global Fund and Student Accommodation Development Venture, with a combined target equity size of US$1.35 billion (S$1.8 billion).
- Mr David Mansfield Managing Director, Australia, Ascott. Mr Mansfield oversees Ascott’s managed operations in Australia, in addition to ongoing global leadership of business format franchise brand, Quest Apartment Hotels, which comprises over 170 properties in Australia, New Zealand, Fiji and the United Kingdom.
- Mr Tan Tze Shang Managing Director, Special Projects and Senior Advisor to Ascott China. A veteran leader with close to 20 years’ experience in China, Mr Tan provides counsel and guidance on China-related matters. He also leads and oversees key organisation projects to ensure strategic alignment and provides implementation support at the executive level.
- Mr Joseph Wong Managing Director, China, Ascott. Effective 26 March 2024, Mr Wong will lead the team to oversee and drive all business, operations, and growth of the company in China.
- Mr Vincent Miccolis Managing Director, Middle East, Africa, Turkey and India (MEATI), Ascott. Reporting to Mr Lee Ngor Houai, Chief Operating Officer, EMEA, South Asia and China, Ascott, Mr Miccolis leads the team in MEATI to drive all business, operations, and growth in the region.
Envisioning the Future
Poised to build on its success as its footprint broadens and the Ascott evolves its collections and brands to cater to the evolving needs of modern travelers, the company is well equipped with its finest leadership yet and a marching order to author digital innovation and sustainability.
The recent changes in Ascott’s executive team and the company’s impressive financial performance are indicators of a strategy that combines the pursuit of rapid expansion during the travel industry’s recovery with the ambition to become a dominant player on a worldwide scale. With all of their recent executive hires and growth, it’s clear that they need to figure out what their clients want next and establish a more permanent presence in the home and travel industries. It remains to be seen if Ascott can manage these potentially massive changes without negatively affecting the services and experiences that consumers in established regions have grown to anticipate.
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