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Ascott buys Tauzia stake

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SINGAPORE, 18 September 2018: CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), will invest about USD26 million for a 70% stake in Green Oak Hotel Management, the holding company for Tauzia Hotel Management.

This is Ascott’s first major move into the lodging segment beyond its core serviced residence business and existing business in apartments for corporate lease.

Tauzia is one of Indonesia’s top five hotel operators.

With its investment in Tauzia, Ascott will gain 20,000 units spanning 122 hotels across Indonesia, Malaysia and Vietnam, half of which are under development.

This puts Ascott’s portfolio at more than 94,000 units globally, surpassing its 2020 target of 80,000 units well ahead of time.

Close to 60% of Tauzia’s properties are located in Jakarta, Bali, Bandung, Surabaya and Yogyakarta.

About 70% of the group’s hotels cater to business and convention travellers, while 30% target leisure travellers.

Ascott’s chief executive officer, Kevin Goh said: “We are also looking to expand beyond serviced residences where we can leverage Ascott’s over 30 years of experience managing properties globally… Together with our earlier platform investments in Synergy Global Housing and Quest Apartment Hotels, increasing the scale of our business will allow us to achieve greater synergies in cross-selling and operational efficiencies as well as anchoring Ascott’s position as a dynamic chain player in the lodging industry.”

In the Indonesian hospitality market for 17 years, Tauzia’s top brands are the mid-tier Harris Hotels, Fox Harris Hotels; Yello Hotels and POP Hotels.

Goh said the group would strengthen Tauzia’s presence in Indonesia, while expanding to Malaysia, the Philippines, Thailand and Vietnam, as well as secondary cities in Cambodia, Laos and Myanmar.

Ascott has 10 business hotels with about 2,000 keys in and hopes to increase this to 20,000 keys over the next five years across Southeast Asia through Tauzia.

“Ultimately the hotel portfolio could reach 41,000 keys, constituting about 25% of our 160,000-unit target by 2023,” said Goh.

In Indonesia, Ascott has a 22-year track record with 17 serviced residences and more than 3,000 units across Jakarta, Bali, Bandung, Karawang, Makassar, Surabaya and Yogyakarta.

Ascott has been accelerating its expansion in recent years. In May 2018, it acquired a majority stake in Synergy Global Housing, a leading accommodation provider in the US and upped its stake in Quest Apartment Hotels from 20% to 80%, propelling Ascott to become the biggest serviced residence player in Australasia.

A Singapore company, it has more than 55,000 operating serviced residence units and hotel rooms in key cities of the Americas, Asia Pacific, Europe, the Middle East and Africa, as well as over 39,000 units which are under development, making a total of over 94,000 units in over 630 properties. The company’s brands include Ascott, Citadines, Somerset, Quest, The Crest Collection, and lyf. Ascott’s portfolio spans more than 160 cities across more than 30 countries.

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