Ascott, CapitaLand's wholly owned serviced residence business unit, has invested approximately US$26 million for a 70% stake in Green Oak Hotel Management, the holding company for TAUZIA Hotel Management (TAUZIA). This marks its first major move into the lodging segment beyond its core serviced residence business and existing business in apartments for corporate lease, the press statement read.
The investment in TAUZIA, a renowned hotel operator in Indonesia, Ascott will have an additional 20,000 units spanning 122 hotels across Indonesia, Malaysia and Vietnam. This puts Ascott's portfolio at more than 94,000 units globally, surpassing its 2020 target of 80,000. Close to 60% of TAUZIA's portfolio are located in key Indonesian cities such as Jakarta, Bali, Bandung, Surabaya and Yogyakarta. Also, about 70% of TAUZIA's hotels cater to business and convention travellers, while 30% are targeted at leisure travellers.
TAUZIA has six in-house lifestyle brands comprising HARRIS Hotels, FOX HARRIS Hotels, YELLO Hotels, Préférence, HARRIS Vertu Hotels and POP! Hotels, all of them catering to various traveller groups. Its brands will widen and complement Ascott’s brands, given the different product offerings targeted at different customer segments.
In a statement to Marketing Interactive, Ascott's CEO Kevin Goh said Ascott aims to capitalise on "significant opportunities" in the middle-class business hotel segment.
He added that this segment is expanding at an "unprecedented rate" due to the rise of the gig economy, super commuters, infrastructure builders, other project-based workers, and tech-savvy, self-sufficient, and value conscious leisure travellers.
TAUZIA’s fastest growing mid-tier business hotels will enable it to capture the ballooning middle-class segment in Asia, which will be home to two-thirds of the world’s middle-class by 2030, Goh told Marketing Interactive.
Besides strengthening TAUZIA's presence in Indonesia, Goh said it will leverage Ascott's global network of about 100,000 corporate clients to bring TAUZIA to international markets, such as Malaysia, the Philippines, Thailand and Vietnam. Secondary cities in Cambodia, Laos and Myanmar are also on Ascott's radar.
[gallery link="file" ids="235590,235589"]
“We are also looking to expand beyond serviced residences where we can leverage Ascott’s over 30 years of experience managing properties globally. Scaling up the lodging business will allow Ascott to address these new segments of customers by widening our offering of products and services," Goh said.
Meanwhile, Marc Steinmeyer, founder of TAUZIA said, “The strategic partnership with Ascott will elevate TAUZIA to an international platform, bringing us to more geographies beyond Indonesia." He added that as the current management continues in the running of TAUZIA’s hotels and the integration with Ascott’s network, the combined expertise will accelerate TAUZIA’s growth to become a leading hotel operator in the region.