Ascott’s Oakwood Expansion: A Leap in Global Hospitality

January 30, 2024

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In an era where the hospitality industry continually reinvents itself, The Ascott Limited (Ascott) stands out with its recent strategic triumph – the expansion of its Oakwood portfolio by over 20%. Following the acquisition of Oakwood Worldwide in the second half of 2022, this monumental growth marks a significant milestone for Ascott and the global extended stay sector.

Ascott, a lodging business unit wholly owned by CapitaLand Investment (CLI), has effectively cemented its position as one of the world’s top three providers of extended-stay serviced residences. This expansion initiative has introduced Ascott’s Oakwood brand to bustling cities across India, Indonesia, Malaysia, South Korea, and Vietnam, enhancing its global footprint to an impressive 48 cities.

The acquisition and integration of Oakwood into Ascott’s ecosystem exemplify a masterclass in strategic growth and operational efficiency. Ascott’s integration of Oakwood properties into its loyalty programme, Ascott Star Rewards, and its global sales, marketing, and digital platforms have streamlined operations and bolstered revenue and cost synergies. These efforts have resulted in the swift conversion of new contracts and operational transitions under the Oakwood brand, like the Oakwood Hotel & Apartments Taman Mini Jakarta and Oakwood Makati Avenue.

Kevin Goh, CEO of Ascott and CLI Lodging, encapsulates the essence of this growth, stating, “The uplift in revenue and improved margins are testament to Ascott’s ability to leverage pricing power and meet market demand. With more operationally ready properties coming onstream at a faster pace, the Oakwood portfolio immediately contributes to Ascott’s recurring fee income. This aligns with our aim to double fee earnings to more than S$500 million by 2028.”

The strategic acquisition isn’t just about expansion; it’s a testament to Ascott’s agility in capturing market opportunities and enhancing its competitive edge. The company continues to pursue transformative deals that offer immediate access to new markets and synergies, thus driving its global leadership in hospitality.

The Oakwood brand, established in 1962, is synonymous with reliability and high standards in corporate travel. It’s now being refreshed to align with the emerging trend of blended travel, where the lines between business and leisure are increasingly blurred. The brand is evolving to include serviced apartments, city hotels, and full-service resorts, like the Oakwood Ha Long in Vietnam and the upcoming Oakwood Hotel & Apartments Benoa Bali in Indonesia.

Tan Bee Leng, Ascott’s Managing Director for Brand & Marketing, highlights the brand’s evolution: “With the rise of telecommuting and flexible schedules, business travelers increasingly view work trips as opportunities for extended leisure. The refreshed Oakwood brand seeks to balance our guests’ work commitments with their desire for personal wellness and enrichment when traveling.”

The brand refresh is more than a cosmetic change; it’s a strategic move to position Oakwood as a leader in the blended travel trend. This involves offering in-property amenities, productivity tools, and activities seamlessly integrating work and leisure.

Ascott’s Brand-360 strategy, encompassing the refresh of other brands like Citadines, Somerset, and Ascott, reinforces its commitment to creating unique brand experiences. The Oakwood brand refresh introduces signature experiences like the Oakroom, a welcoming lobby area, and Oakwood’s unique approach to comfort food, exemplified in its “All You Knead is Comfort” program.

As Ascott celebrates its 40th anniversary, it stands on the brink of a transformative journey. With its strategic expansion, brand refresh, and dedication to capturing the essence of blended travel, Ascott is not just keeping pace with industry trends but setting new benchmarks, ready to own the upswing with the rebound of global travel and tourism.

In conclusion, Ascott’s strategic expansion and refreshing of the Oakwood brand exemplify its visionary approach to global hospitality. This bold move enhances its market position and sets a new standard for the industry. The company’s ability to adapt to changing market dynamics and its focus on operational excellence and customer-centric offerings positions it as a leader in the global hospitality sector.

Ascott’s journey through this expansion vividly portrays how a company can transcend traditional boundaries to offer unique, holistic experiences to its customers. By aligning with the latest trends like blended travel and emphasizing personalized comfort and luxury, Ascott is redefining what it means to travel for business and leisure.

As the world of travel and hospitality continues to evolve, Ascott’s strategic maneuvers, such as the Oakwood acquisition, serve as a blueprint for others in the industry. The integration of cutting-edge technology, a strong emphasis on customer experience, and a commitment to sustainable growth are key factors driving its success. Ascott’s forward-thinking approach ensures it not only meets but anticipates the modern traveller’s needs.

In an era marked by rapid change and increasing competition, Ascott’s expansion of the Oakwood portfolio is more than a growth strategy; it is a statement of intent. It signals Ascott’s commitment to innovation, excellence, and leadership in the global hospitality industry. As it embarks on this new chapter, Ascott is poised to redefine the future of extended stay and luxury hospitality, making every journey an experience to cherish.

Ascott’s story of growth and innovation is not just about numbers and new markets; it’s about people, experiences, and the relentless pursuit of excellence. As the company looks to the future, its focus on sustainable growth, customer satisfaction, and operational efficiency will continue to drive its success.

In a world where travel and hospitality are constantly being reimagined, Ascott stands out as a visionary leader, ready to take on new challenges and continue its journey of growth and excellence. With its strategic expansion and brand evolution, Ascott is not just following trends; it’s creating them, paving the way for a new era in global hospitality.