The Ascott Limited, the lodging business unit of CapitaLand Investment’s (CLI), has announced its ambitious target to double its fee revenue to over $500 million in the next five years. This target is pegged to FY2022’s base of $258 million, which the company has earned record fees from. Furthermore, with a 36% year-on-year growth in FY2022, Ascott is confident it will be able to hit the 160,000 units mark by 2023.

Ascott has also reported positive signs in the first quarter of FY2023 with the signing of over 4,000 units. The business plan to further expand its portfolio of serviced residence, hotel, co-living, and senior living brands, targeting a net room growth rate of somewhere between 8%-10% a year.

As CEO of Ascott and CLI Lodging, Kevin Goh stressed the importance of strategically securing management and franchise contracts for well-placed prime properties. He said: “We are now seeing the positive financial impact of growing our portfolio by eightfold and will focus on driving even stronger fee growth over the next five years. Over 80% of our total units are under management and franchise contracts, up from 43% ten years ago. These management and franchise contracts typically have sticky recurring fee revenue and long tenures. To achieve our new growth target, we will secure more management and franchise contracts for prime properties that generate higher quality fees, and leverage our strong brand equity and direct distribution channels to deliver greater value to property owners and customers.”

Given its recent successes, including more properties under its belt, such as the Citadines Connect City Centre hotel opened on Orchard Road and the two it recently acquired in China and Netherlands for $190 million under its global fund, Ascott is in a position to implement these strategies.

CLI’s lodging business recently unveiled its third co-living property in Singapore, further pushing the growth of Ascott and paving the way in delivering greater value to its customers. With a strong track record and a feisty determination to hit the goals, Ascott is in an excellent position to double its fee revenue in the next five years.