Ascott expands in China, achieves record profits
SINGAPORE - The Ascott Group has acquired two properties in Shanghai and Xi’an as part of its target to achieve 10,000 serviced residence units in China by 2010.
Ascott will invest up to a total of US$44.6 million in the two developments, which will be operated under the Group’s Citadines brand. These acquisitions will increase Ascott’s China portfolio by more than 340 serviced residence units to a total of about 4,000 units.
Cameron Ong, Ascott’s managing director and CEO said: “These new investments further demonstrate our long-term commitment to China, and the importance of China as a key growth market for Ascott. We are on track to achieving our target of 10,000 serviced residence units in China by 2010.”
Meantime, the Group achieved record profits of US$151.3 million in FY2006, almost four times more than the net profits for FY2005.
This result has been largely attributed to Ascott´s strategy in actively managing its properties and monetising assets to realise their capital values.