Ascott seals three new property contracts in Saudi Arabia

They are expected to open in 2017.

As it extends its footprint in the Middle East, Singapore-listed serviced residence owner-operator Ascott Ltd. announced that it has clinched contracts to manage another three properties in Saudi Arabia.

These three properties, which are all slated to open in 2017, include the 280-unit Ascott Makkah, 92-unit Ascott Villas Riyadh, and 69-unit Spectrums Residence in Jeddah.

Ascott's CEO Lee Chee Koon said Ascott has been banking on the religious tourism as it is one of the fastest growing segments in the travel industry.

Lee cited that in Saudi Arabia, tourism is valued at US$5.68 billion, with 19 million pilgrims having visited Makkah and Madinah in 2015. This is further expected to reach 30 million by 2025.

"The strong partnerships we have forged in the Middle East have enabled us to accelerate Ascott’s expansion in the region to tap this growing market. Saudi conglomerate Abdul Samad Al Qurashi has entrusted Ascott to manage six serviced residences, the latest being Ascott Makkah and Spectrums Residence in Jeddah," Lee said.

The latest contracts increase Ascott's portfolio in the Middle East to more than 2,700 apartment units in 19 properties across 10 cities including Bahrain, Oman, Qatar, Saudi Arabia, Turkey and the United Arab Emirates (UAE).

"We will further expand via management contracts in these gateway cities where we will continue to build scale. We aim to double our portfolio in the Middle East to 5,000 units by 2020,” Lee stressed.

Meanwhile, Ascott is also set to open Ascott Rafal Olaya Riyadh, its first serviced residence in the Kingdom’s capital.