COMPETITIVE STRENGTHS OF OUR PROPERTIES
Location
Ascott Reit’s 59 serviced residences and 31 rental housing properties are located in key gateway cities
across Singapore, Australia, Belgium, China, France, Germany, Indonesia, Japan, Malaysia, the
Philippines, Spain, United Kingdom and Vietnam. The properties are well served by public transportation
and within walking distance to amenities such as restaurants and supermarkets. In Japan, 19 of the rental
housing properties are located in Tokyo while the remaining 12 rental housing properties are located in
cities outside of Tokyo, namely Fukuoka, Hiroshima, Kyoto, Saga, Sapporo and Sendai.
Brands
Four serviced residences are managed under the Ascott brand, 15 are managed under the Somerset
brand while 34 are managed under the Citadines brand. In Japan, the rental housing properties are
managed under the local brands. All serviced residences are managed by Serviced Residence
Management Companies (SRMCs), with the exception of Madison Hamburg, Quest Sydney Olympic
Park, Quest Mascot and Quest Campbelltown, which are managed by third-party operators in their
respective brands. Best Western Shinjuku Astina Hotel will be converted into a Citadines-branded
serviced residence in 2015.
Scale
Ascott is the largest international serviced residence owner-operator. Its strong global brand and
30-year industry track record enable our properties to enjoy worldwide recognition as the preferred
accommodation for extended-stay business travellers. Through a combination of serviced residence
and rental housing units, Ascott Reit’s portfolio of 10,502 apartment units cater to a wide range of
customer needs. These include studio, one to three-bedroom, and penthouse apartment units. We
leverage on Ascott to achieve economies of scale, benefitting from its global recognition,
international sales, wide distribution and marketing networks and centralisation of key functions such
as finance and procurement.
Awards
In 2014, awards won by properties in Ascott Reit’s portfolio include:
• ‘Best Serviced Residence in Asia-Pacific (1st)’ (Business Traveller Asia-Pacific Awards 2014) for
Ascott Raffles Place Singapore.
• ‘World’s Leading Serviced Apartment’ (World Travel Awards 2014) for Ascott Raffles Place Singapore.
• ‘Leading Serviced Apartments’ (World Travel Awards 2014) for Ascott Jakarta, Ascott Makati, Ascott
Raffles Place Singapore, Citadines Sainte-Catherine Brussels and Citadines Arnulfpark Munich.
Our Extended-Stay Business Model
Our guest base comprises mainly expatriates’ relocation, corporate assignments, project groups and
extended-stay. Corporate travel, which is driven by long-term macroeconomic factors such as Gross
Domestic Product (GDP) growth and Foreign Direct Investment (FDI), is generally more stable than
the seasonal nature of tourism travel. Our flexible business model provides short to long-term
accommodation. The average length of stay for properties on serviced residence management
contracts is approximately four months, while rental housing properties with leases averaging one to
two years offer greater income stability to the portfolio. Shorter-term stays also presents opportunities
for yielding growth and higher operating margins. For Ascott Reit, income stability is also supported
by master leases and serviced residence management contracts with minimum guaranteed income.
Master Leases
30 of our properties, 17 in France, six in Japan, three in Germany, three in Australia and one in
Singapore, are on master leases. The master lessees pay fixed net rental per annum to Ascott Reit.
The master leases in Europe are subject to annual rental revisions pegged to indices representing
Portfolio Overview
Pursuing Growth | 61
