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Mr. Lee Chee Koon, CEO of Ascott, said: “These franchise agreements mark a new milestone for Ascott. Since our first apartment opened in Singapore 30 years ago, Ascott has grown to become the world’s largest international serviced apartment operator. We have built a reputable property management system, a vast business network, a strong brand identity, and global customer trust. Franchising will be one of Ascott’s future development directions. It will allow us to scale rapidly and reach new markets. Through these franchise agreements, we have added to our portfolio to have a presence in 85 cities worldwide. Along with investment, contract management, and strategic partnerships, franchising will bring us closer to our goal of owning 40,000 apartments globally this year.” 2015.”
“We are excited to introduce the Somerset brand to Laos, an attractive market for foreign direct investment due to its natural resources and hydropower potential. With the Lao government pushing forward economic reforms and creating numerous specialized industrial zones across the country, the number of people working and traveling to Vientiane, the economic hub, will increase. This will create significant demand for our apartment services, especially given the lack of internationally-standard apartments in Vientiane.”
Mr. Lee added: “The majority of our clients are business travelers and long-term businesspeople, and increasingly more tourists are choosing to stay in Ascott’s serviced apartments. Bali is a popular destination for holidays, meetings, and conferences. With Citadines Kuta Beach Bali, they can enjoy a warm and familiar atmosphere. Ascott’s presence in Bali also aims to strengthen Ascott’s position as Indonesia’s largest international serviced apartment operator with over 2,400 apartments in 11 buildings in Jakarta, Surabaya, and Bali.”
Ascott granted the franchise rights to Somerset Vientiane to a subsidiary of LCD Global Investments Ltd, a real estate and hospitality group listed on the Singapore Stock Exchange. Under the agreement, the apartment complex will be managed by Ascott for the first two years to ensure it is renovated to Somerset brand standards before being transferred under a franchise agreement. The rights to Citadines Kuta Beach Bali were granted to PT Menara Permata Propertindo. Ascott also currently manages Somerset Kencana Jakarta, which is scheduled to open in 2015.
