[photopress:property_ascott.jpg,full,alignright]Ascott, a member of CapitaLand and the largest international serviced residence owner and operator outside of the United States, is planning to expand to more second-tier cities.
Richard Ong, senior vice president for China operation, Ascott International, a member of the Ascott Group said,’We have a quite big presence in gateway cities such as Beijing, Shanghai and Guangzhou where we operate a total of 10 properties under our Ascott, Somerset and Citadines brands. We are now seeking opportunities in second-tier cities to expand our footprint at a faster pace.’
Richard Ong said the company’s earlier plan to increase its China portfolio to 10,000 units by 2010 will probably be further raised.
He said the Somerset and Citadines brands will probably expand faster compared to the upscale Ascott brand. Ascott now operates 21 properties in China with approximately 4,000 serviced residences.
Growing numbers of international visitors as well as aggressive expansion schemes by multinational corporations in both first and second-tier cities have contributed to an ever-growing demand in the serviced residence sector.
In Shanghai, the supply of serviced apartments, which mainly cater to expatriate residents, is expected to grow by an average 7.9% over the next five years.
The city should get around 3,300 new serviced apartment units over the next five years, adding to the 2006 stock of 9,250 units.
Source: Shanghai Daily