The Ascott Limited (Ascott), the lodging business unit wholly owned by CapitaLand Investment (CLI), announced a 28 per cent year-on-year increase in fee-related earnings (FRE) to $246 million.
Ascott also achieved the highest number of property openings, with nearly 9,600 units turning operational in the same year. Revenue per Available Unit (RevPAU) grew 20 per cent over 2022 from higher average daily rates and occupancies. 77 new properties across all brands were signed in 2023. The strong growth trajectory enabled Ascott to surpass its year-end target and secured 160,000 units earlier than expected in March.
Kevin Goh, Chief Executive Officer for Ascott and CLI Lodging, said: “Ascott had a record year of fee earnings and property openings in 2023. The strong performance was underscored by our diverse portfolio of brands and strategic presence in new destinations. This is an important milestone to mark Ascott’s transformative journey to become a global leader in hospitality, as we celebrate 40 years of service this year. Harnessing our extensive network of third-party owners and in-market expertise, Ascott remains focused on driving asset light growth organically through management and franchise agreements.
“In 2023, 38 per cent of new agreements signed were with existing owners, a demonstration of their confidence in us. At the same time, we are seeking out transformative deals which can accelerate our expansion. We will continue to build upon our portfolio of global brands to drive higher quality growth. This puts us well on track to achieve our target of more than $372 million in fee earnings by 2028.”
This year, Ascott marks 40 years in hospitality service.