Ascott’s Strategic Leap with Oakwood
Updates to the Oakwood portfolio have been presented by The Ascott Limited (Ascott), which is a subsidiary of CapitaLand Investment (CLI), and have changed the face of global hospitality. This addition follows Ascott’s strategic acquisition of Oakwood Worldwide in the second half of 2022, which catapulted the company to the forefront of the global extended stay serviced housing provider market.
Expanding Horizons and Seamless Integration
Post-acquisition, Ascott has impressively expanded Oakwood’s reach to 48 cities, venturing into new territories such as Busan, Batam, Bali, Penang, Kota Kinabalu, Visakhapatnam, Chennai, Navi Mumbai, and Ha Long. This expansion has resulted in a growth spurt for Oakwood, now boasting close to 18,000 units, a more than 20% increase. This growth trajectory underscores Ascott’s strategic global vision, with over 20 new signings since the acquisition.
In a seamless transition, Oakwood properties have been integrated into Ascott’s comprehensive ecosystem, encompassing the Ascott Star Rewards loyalty program, global sales, marketing platforms, and advanced digital systems. This integration has catalyzed revenue growth and operational efficiencies, optimizing cost synergies across the Oakwood portfolio.
Insights from Ascott’s Leadership
Mr. Kevin Goh, CEO for Ascott and CLI Lodging, remarked, “Ascott’s operational efficiency and commitment to disciplined growth are evident in the smooth integration of the Oakwood portfolio into Ascott’s operational framework. The uplift in revenue and improved margins are testament of Ascott’s ability to leverage pricing power and meet market demand, contributing to an overall enhanced financial performance of the Oakwood portfolio post-acquisition. With more operationally ready properties coming onstream at a faster pace, we are seeing immediate contribution of the Oakwood portfolio to Ascott’s recurring fee income; which is in line with our aim to double fee earnings to more than S$500 million by 2028.”
He further stated, “Ascott will continue to pursue transformative deals which can accelerate our expansion and provide us with immediate access to new markets, diverse customer bases, and valuable synergies. The strategic benefits of inorganic expansion extend beyond incremental growth. They have empowered us to unlock economies of scale, streamline operations, and enhance overall competitiveness over the years[1]. Coupled with our continued focus on organic signings of management and franchise contracts, we not only intend to keep pace with industry trends but to break new grounds and stay ahead, positioning Ascott as a global leader in hospitality.”
Brand Refresh and Future Prospects
The Oakwood brand, a stalwart in corporate travel since 1962, is undergoing a significant refresh. This includes extending its offerings beyond serviced apartments to city hotels and full-service resorts. The refreshed brand aims to cater to the evolving preferences of guests, particularly in the context of blended travel.
Ms. Tan Bee Leng, Ascott’s Managing Director for Brand & Marketing, commented, “Against the backdrop of the surge in bleisure travel, a portmanteau of business and leisure, we have harnessed Oakwood’s deep-rooted understanding of corporate travel, to kickstart a brand refresh that aligns with the needs of business travellers today.”
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Oakwood’s New Brand Signatures
The refreshed Oakwood brand introduces several new brand signatures, including ‘Feels Like Home’, ‘Home on a Plate’, and ‘All You Knead is Comfort’, each designed to enhance the guest experience. These initiatives range from creating inviting lobby spaces to offering comfort food and culinary events, emphasizing Oakwood’s commitment to comfort and quality.
Ascott’s acquisition and integration of Oakwood mark a significant milestone in the hospitality industry, setting new standards for extended stay experiences. With a focus on growth, innovation, and guest satisfaction, Ascott is poised to redefine the future of global hospitality.
For more information on the refreshed Oakwood brand and to experience it across their global properties, visit www.discoverasr.com/Oakwood.
[1] Ascott’s earlier acquisitions include the Citadines brand in 2004, Quest Apartment Hotels and Synergy Global Housing in 2017, and TAUZIA Hotel Management in 2018.
