Ascott plans to expand in Phl

MANILA, Philippines - The Ascott Limited plans to expand in the Philippines by increasing the total number of properties under its operations and management to 10 by 2015 on expectations of the country’s sustained positive economic performance and continued growth of travelers on extended stay.

“Our goal is to have 10 properties (under our operations) here by 2015,” Ascott regional general manager for the Philippines and Thailand Arthur Gindap told reporters yesterday.

At present, Ascott has three operating projects located in Makati City’s central business district. These are the 306-unit Ascott Makati, the 151-unit Somerset Millennium Makati and the 147-unit Somerset Olympia Makati.

Four other projects currently under development are also slated to be under Ascott’s operations and management upon completion. These projects are the Ascott Bonifacio Global City and the Citadines Salcedo Makati which are slated to open in 2014, the Citadines Millennium Ortigas will be completed by 2015 and the Somerset Alabang is seen to be ready by 2017.

“We are constantly looking for new properties. We are eyeing new areas in Metro Manila,” Gindap said.

He noted that the firm is looking at developments in Quezon City and the Mall of Asia area in Pasay City and considering what property brand they can bring there.

Ascott caters to guests staying for one week to one year or even longer, by partnering with property developers for the operation and management of serviced residences under three brands. The Ascott brand is for top executives, while the Citadines brand is for the young single travelers and the Somerset brand is for families.

Outside of Metro Manila, Gindap said the firm is interested in the cities of Cebu and Davao.

He said they want to operate and manage more properties here given the country’s favorable economic conditions.

“We are very bullish on the Philippines. We think the extended stay travelers will continue to grow here,” he said.

Given the country’s positive economic performance and credit ratings upgrades received from debt raters Fitch Ratings and Standard & Poor’s Ratings Services to investment grade, he said that foreign direct investments here are expected to rise which would, in turn, bring more travelers on an extended stay.

Ascott’s serviced residences, he said ensure a more stable occupancy compared to hotels as it allows foreign business executives on extended business trips, project assignment or overseas posting to enjoy the comfort and convenience of a hotel, as well as the space and privacy offered by a private residence.

“We have more space. We’re a one-stop shop and travelers don’t need to worry about cleaning, security and laundry so it (Ascott’s serviced residence) is a lot more convenient than a hotel,” he said.

He added that Ascott’s serviced residences also offer unit holders an exit strategy through the firm’s affiliate Ascott Residence Trust, which could acquire the property.

Ascott, is a wholly-owned subsidiary of Singapore-based CapitaLand Limited, one of Asia’s largest real estate companies.

To date, Ascott has more than 22,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 8,000 units under development, making a total of more than 31,000 units in over 200 properties.