CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), has boosted its leading position in the Philippines by entering a strategic alliance with one of the country’s top real estate developers, Cebu Landmasters Inc. (CLI), to manage 1,600 units by 2022.
Under the alliance, both parties will seek properties for CLI to develop into serviced residences to be managed by Ascott. Ascott and CLI have signed management contracts for their first four properties offering over 800 units in the prime business districts of Bacolod, Cebu City and Davao City.
Citadines Bacolod City, Citadines Cebu City, Citadines Parago in Davao, and lyf Cebu City, will open
from 2019 to 2021. Citadines Bacolod City, the latest property sealed under the partnership, marks Ascott’s entry into Bacolod. Separately, Ascott also made its foray into Quezon City, Metro Manila’s largest city, by scoring a management contract with another property owner for Citadines Roces Quezon City, which will open in 2023.
The two new contracts in Bacolod and Quezon City will increase Ascott’s portfolio in the Philippines by 27% year-on-year to over 4,300 units.
Mr Kevin Goh, Chief Executive Officer, The Ascott Limited, said: “Ascott’s alliance with CLI in the Philippines builds on the strategic partnerships we have forged around the world to accelerate Ascott’s growth globally. Leveraging Ascott’s global network and strong hospitality expertise, as well as CLI’s well-established reputation in the Philippines, the partnership will allow us to gain access to a pipeline of quality projects in the country. This will fast-track our expansion and strengthen Ascott’s leadership position as the largest international hospitality player in the Philippines. We are confident that Ascott will exceed 80,000 units in 2018 and expand to 160,000 units worldwide by 2023.”
Mr Daniel Wee, Ascott’s Country General Manager for the Philippines, said: “Ascott has been in the Philippines for 18 years with strong performing properties that enjoy an average occupancy rate of about 80% under our award-winning brands Ascott, Citadines and Somerset. We will also introduce our millennial-targeted lyf brand to the country under our partnership with CLI. Citadines Roces Quezon City, as well as our first four properties with CLI –Citadines Bacolod City, Citadines Cebu City, Citadines Paragon Davao, and lyf Cebu City, will open in the next five years. We are on track to achieve Ascott’s target of 6,000 units in the Philippines by 2020.”
In the Philippines, Ascott currently has 20 properties offering over 4,300 units across key cities in Metro Manila, Bacolod, Cebu, Davao, and Iloilo. These include 13 properties that are slated to open from 2018 to 2023. Citadines Bay City Manila will open this year, followed by Citadines Amigo Iloilo and Citadines Cebu City in 2019. Ascott DD Meridian Park Manila, Citadines Bacolod City, Citadines Paragon Davao, Somerset Gorordo Cebu, Somerset Valero Makati, Somerset Salcedo Village Makati, and lyf Cebu City will open in 2021. Meanwhile, Citadines Greenhills Manila is targeted to open in 2022 whereas Citadines Benavidez Makati and Citadines Roces Quezon City will open in 2023.
Demand for quality accommodation in the Philippines is on the up with its rising middle-class population and its growing attractiveness as an investment and tourism destination. In 2017, 6.6 million tourists visited the Philippines, an increase of 11% from 2016. As one of the top economies in Southeast Asia, the Philippines has embarked on a mega infrastructure programme to drive economic growth and foreign investment. Some of the major projects underway include the Metro Manila Subway, the Luzon Spine Expressway Network, the Metro Manila Logistics Network and Metro Cebu Expressway.