What's Happening?
The Ascott Limited, a lodging business unit of CapitaLand Investment, is expanding its global resort footprint through asset-light strategies. This expansion includes 11 new signings across high-demand travel markets in Asia and the Middle East, bringing its portfolio to approximately 50 properties in sought-after resort destinations worldwide. The expansion is driven by Ascott's multi-typology brand strategy, which adapts its well-known brands for resort settings, allowing efficient scaling in high-potential destinations. This strategy aims to fulfill lifestyle aspirations of its growing Ascott Star Rewards membership and deliver brand-led solutions that drive long-term value for property owners. Recent signings include properties in iconic beach destinations such as Patong Beach in Phuket and Jimbaran Beach in Bali, as well as emerging markets like Cam Ranh and Sam Son in Vietnam.
Why It's Important?
Ascott's expansion into resort destinations is significant due to the projected growth in global leisure travel spend, expected to triple to $15 trillion by 2040. This growth is fueled by increasing demand from the burgeoning middle class in emerging markets, the rise of experience-led younger travelers, and surging domestic and regional tourism. The global resort segment, valued at $300.03 billion in 2023, is forecast to reach $945.38 billion by 2030, driven by rising disposable incomes and increased international travel. Ascott's strategic expansion positions it to capitalize on these industry tailwinds, offering differentiated, locally attuned guest experiences while staying responsive to evolving travel trends.
What's Next?
Ascott plans to continue expanding its resort portfolio with over 20 new properties set to open in resort destinations over the next three years. This includes developments in Vietnam, Indonesia, South Korea, and the UAE, among others. The company aims to leverage its flex-hybrid model and multi-typology brand approach to scale trusted urban brands into resort destinations with local authenticity and operational excellence. This expansion strategy is supported by a growing base of loyal Ascott Star Rewards members seeking elevated leisure experiences, which fuels demand for these differentiated resort offerings globally.
Beyond the Headlines
Ascott's expansion strategy highlights the growing importance of 'bleisure' travel, where over 70% of travelers from emerging markets now combine business and leisure trips. This trend underscores the need for hospitality brands to offer flexible, experience-rich stays that cater to both business and leisure travelers. Ascott's approach aligns with this trend, offering a flex-hybrid model that optimizes returns and mitigates risk in dynamic leisure markets by serving both short and extended stays within a single operational framework.
