The Ascott Limited, a prominent player in the serviced apartment industry, has marked a significant milestone with its acquisition of Oakwood Worldwide. Since acquiring Oakwood from Mapletree Investments in mid-2022, Ascott has propelled the brand’s growth, securing over 3,000 new units across more than 20 properties. This expansion has boosted Oakwood’s portfolio by over 20%, bringing it to nearly 18,000 units and making it one of Ascott’s fastest-growing global brands in 2023.
Ascott’s strategic expansion has seen Oakwood’s presence grow to 48 cities, including new markets such as Busan in South Korea, Ha Long in Vietnam, and several cities in Indonesia, Malaysia, and India. This geographical diversity not only broadens Oakwood’s market reach but also strengthens its brand presence across Asia, catering to the growing demand for high-quality hotels and apartments in these regions.
According to Mr. Kevin Goh, Chief Executive Officer of The Ascott Limited, the acquisition has led to a notable increase in revenue and improved margins for Oakwood. The portfolio’s financial performance has benefited from the swift conversion of properties in Jakarta and Manila, which began operations within months of their acquisition in 2023. These operational efficiencies have contributed to Ascott’s goal of doubling its fee earnings to over $500 million by 2028.
In an exciting move to elevate the Oakwood brand, Ascott has introduced new city hotels and full-service resorts under the Oakwood name. This brand refresh aims to cater to the evolving needs of business travellers who increasingly blend work with leisure. The new Oakwood Ha Long villa resort, opened in January, exemplifies this approach, with additional resorts in Bali and Chongli, Northern China, opening in 2024.
The refreshed Oakwood brand promises “comforts of home and beyond,” while Oakwood Premier will target the upper upscale segment with “a touch of luxury.” This shift is designed to appeal to business professionals who value comprehensive travel experiences. Features such as dedicated workspaces with charging ports and activities like cooking sessions and food festivals are being introduced to enhance guest experiences.
Ascott’s strategy extends beyond mere expansion. The company is focused on transformative deals that accelerate growth, open new markets, and create valuable synergies. This approach is evident in the company’s efforts to increase its presence in Japan, where Oakwood’s revenue per available unit grew by approximately 50% year-on-year in 2023, following the acquisition. Long stays constituted 60% of Ascott’s business in Japan, with short stays making up about 65% of revenue.
Ascott’s flex-hybrid business model, which allows for custom duration of stay and service levels, enables the company to adapt to market demands flexibly. This model is particularly effective in balancing long-term and short-term stays, ensuring robust revenue streams across different market conditions.
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