Friday, September 29, 2006
[RealEdge] BT : Ascott to expand in S'pore with three properties
| Published September 29, 2006  | |
| Ascott to expand in S'pore with three properties
By UMA SHANKARI
AS PART of an aggressive expansion drive, The Ascott Group will spend $60 million to spruce up its portfolio in Singapore - adding another 462 units to three properties. And Ascott's chief executive Cameron Ong said his group, together with other serviced-apartment firms in Singapore, is asking the government to waive long-standing restrictions that prevent these firms from competing directly with hotels. Discussing Ascott's expansion plans for Singapore, Mr Ong said the company would spend $50 million to transform its landmark Asia Insurance Building - which it acquired earlier this year for $109.5 million - into Ascott Singapore Raffles Place. When ready in the first half of 2008, the building will have 154 serviced apartments. The other $10 million will be used to refurbish Hotel Asia, changing it into the 148-unit Citadines Singapore Scotts. Ascott announced its acquisition of Hotel Asia - for $108 million - together with the Asia Insurance Building purchase. Citadines Singapore Scotts will open in mid-2007. The remaining 160 units to be added to Ascott's portfolio will come from parent company CapitaLand's upcoming development at the former Selegie Complex site. There, Ascott's Citadines Singapore Mount Sophia will be part of an integrated project by CapitaLand comprising serviced apartments, office and small office home office (soho) units, and a retail component. The project is slated to open in the second half of 2008. Ascott will manage the units for 10 years, with an option to manage them for another 10 years. The three properties will take the number of rooms Ascott will have in Singapore to 1,357. But the company will lose the management of its 153-room Ascott Singapore on Scotts Road at the end of this year. Ascott sold the property to Wheelock Properties in 2004, and Ascott Raffles Place is expected to replace it as the company's flagship. Ascott aims to have 1,600 rooms in Singapore by 2010. Mr Ong said that other than just increasing the number of units, he wishes to make Ascott a bigger player in the hospitality industry here in other ways. He said he had applied for hotel licences for both Hotel Asia and Asia Insurance Building so that Ascott could lease out rooms daily - instead of weekly as serviced-apartment guidelines require. According to Mr Ong, the Serviced Apartments Association, an industry body representing Singaporean operators, is in talks with the authorities regarding hotel licences. And Mr Ong also wants Ascott to help push up room rates in Singapore. Rates at Ascott Raffles Place are expected to hit $700 per night, while rates at the other two new properties will fetch $250-$300 a night on average. |
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