Asset-light strategy leads Ascott to 160,000-unit target

The company also focused on securing prime properties to double its fee revenue.

Ascott achieved its target to secure 160,000 units by 2023, after acquiring over 4,000 units in the first quarter of the year, because of its asset-light strategy.

Kevin Goh, Ascott CEO, said that the company used the strategy to double the units they generate every five years, starting from about 20,000 units in 2008.

Because of its asset-light strategy, Ascott expanded its investment portfolio eightfold and started to experience the beneficial financial effects of the growth.

READ MORE: Tembusu Grand sales bookings begin on 8 April

Ascott also renewed its target to double its fee revenue to more than $500m in the next five years to sharpen its focus on quality growth. They would begin with a base of $258m from 2022—the highest earnings record for the company.

To achieve its new growth target, Goh said that Ascott would "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." 

Aside from strategies to generate organic growth, Goh said Ascott is also actively seeking strategic mergers and acquisition opportunities to accelerate its target to be a significant global player in the lodging industry.