Ascott buys stake at Indonesian hotel operator for $35.71m

It will get a boost of close to 20,000 units from 122 hotels.

Ascott Limited (Ascott) forays into lodging segment as it invested $37.71m (US$26m) to acquire 70% stake in Indonesian firm Green Oak Hotel management, an announcement revealed.

Green Oak Hotel Management is the holding company for TAUZIA Hotel Management (TAUZIA) which is amongst Indonesia’s top five hotel operators.

Through its investment in TAUZIA, Ascott will get a boost of close to 20,000 units from 122 hotels across Indonesia, Malaysia and Vietnam, half of which are under development.

Also read: Ascott REIT's net profit up 7% to $63.1m in Q2

The move puts Ascott’s portfolio at more than 94,000 units globally, beating its 2020 target of 80,000 units well ahead of time.

“Whilst Ascott’s serviced residences continue to see strong demand from expatriates and corporate travellers, we can capitalise on significant opportunities in the middle-class business hotel segment which is expanding at an unprecedented rate,” Ascott CEO Kevin Goh noted. “This is brought on by the rise of the gig economy, super commuters, infrastructure builders, other project-based workers, and tech-savvy, self-sufficient, and value-conscious leisure travellers.”