CapitaLand’s wholly-owned serviced residence business unit, Ascott, has secured a contract with Sandhya Hotels to manage three new serviced residences in India. Two properties are in Hyderabad and Bengaluru and a third serviced residence is in Sri City, less than an hour’s drive from Chennai.
The upcoming Citadines Financial District Hyderabad, Citadines Sri City and Somerset Bellandur Bangalore will take Ascott’s presence in India to 10 properties across seven cities with more than 1,800 units.
Lee Chee Koon, CEO, Ascott, said, “India attracted over US$ 39 billion worth of foreign investments in 2015, a 37 per cent increase compared with 2014. Tourist arrivals are also on an upturn as India welcomed more than eight million visitors last year. India’s fast-growing economy, increasing visitor arrivals and rising affluence present immense opportunities for international brands like Ascott.”
Ascott’s strategy for India is to expand in high-growth cities where there is strong demand for international-class serviced residences from expatriates, project teams and business travellers. It will establish more strategic alliances and seek investment opportunities as well as management contracts. Besides cities such as Bengaluru, Chennai, and Gurugram, where Ascott is present, it is also looking at opportunities in key business cities including Hyderabad, Mumbai, New Delhi and Pune. Koon also indicated that India will be a key market as part of Ascott’s global expansion to achieve its target of 80,000 apartment units by 2020.
Sreedhar Rao, managing director, Sandhya Hotels, added, “Sandhya Hotels is venturing into the serviced residence segment with the development of these three properties in Hyderabad, Bengaluru and Sri City. We are delighted to have Ascott manage these properties as it is the world’s largest international serviced residence operator with award-winning brands. Given Ascott’s strong expertise in attracting expatriates and business travellers and the properties’ prime locations in IT hubs, we expect our serviced residences to do well.”
With the increase in business activities and tourist arrivals, Ascott foresees a growing demand for premium serviced residences in India. In addition to these three new serviced residences that will open between 2019 and 2021, Ascott will be opening Citadines OMR Chennai later this year and Somerset Galleria Bangalore next year. Ascott Ireo City Gurgaon and Somerset Diplomatic Greens Gurgaon are slated to open in 2018 and 2019 respectively.