Mr Lee Chee Koon, Chief Executive Officer of Ascott, said: “These franchise agreements mark a milestone for Ascott. Since opening our first residence in Singapore 30 years ago, Ascott has grown to become the world’s largest international serviced residence owner-operator. We have built an established management team, an extensive network, strong brand recognition and trust with customers globally. Franchising will be one of the pillars of Ascott’s future growth. It will allow us to scale rapidly and reach new markets. Through our franchise agreements, we have added to our portfolio to reach 85 cities globally. Together with investments, management agreements and strategic alliances, franchising will bring us closer to our target of 40,000 units globally by 2025.” 2015.”
“We are excited to introduce the Somerset brand to Laos, a market that is attracting foreign direct investment due to its natural resources and hydropower. With the Lao government pushing ahead with economic reforms and creating special industrial zones across the country, the number of expatriates and business travellers to the economic hub of Vientiane will increase. This will create significant demand for our serviced apartments, especially given the lack of international-class apartments in Vientiane.”
“While most of our guests are expatriates and long-term business travelers, more and more tourists are choosing to stay at Ascott’s serviced residences. Bali is a popular destination for holidays, meetings and conferences. With Citadines Kuta Beach Bali, they can enjoy a warm and familiar environment. Ascott’s presence in Bali also strengthens Ascott’s position as Indonesia’s largest international serviced residence operator with over 2,400 units across 11 properties in Jakarta, Surabaya and Bali,” Mr. Lee added.
Ascott has transferred the Somerset Vientiane franchise to an affiliate of LCD Global Investments Ltd, a Singapore-listed real estate and hospitality group. Under the agreement, the residence will be managed by Ascott for the first two years to ensure it is refurbished to Somerset brand standards before being transferred under the franchise agreement. The Citadines Kuta Beach Bali franchise has been transferred to PT Menara Permata Propertindo. Ascott also manages Somerset Kencana Jakarta, which is scheduled to open in 2015.
