[SINGAPORE] Ascott, the wholly owned lodging business of asset manager CapitaLand Investment (CLI), has inked three agreements to add 600 units to its India portfolio, a move that will grow its total portfolio in the country to around 6,100 units across 22 properties.
The new units will be located in cities of Lucknow and Thanjavur and the state of Goa.
Ascott also plans to increase its India portfolio to some 12,000 units by 2028, more than double the roughly 5,500 units in its portfolio as at the end of 2024.
The expansion plans come on the back of favourable growth prospects in the Indian hospitality market, said Ascott on Thursday (Apr 10).
Kevin Goh, chief executive officer of Ascott, noted that India is an important market for Ascott given its strong growth potential as the country is evolving into one of the world’s largest economies, with leisure and recreation spend set to double by 2030, a 2023 report by McKinsey & Co indicated.
“With a rapidly growing middle class, increasing disposable incomes and improving infrastructure, India’s dynamic economic landscape is unlocking immense opportunities for its travel and hospitality sectors,” he said.
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The hospitality sector in India presents tremendous growth opportunities for Ascott given the country’s limited supply of branded hotel rooms, which creates a “significant demand-supply gap”, he said.
Lee Ngor Houai, Ascott chief operating officer for Europe, Middle East, Africa, South Asia and China, said that Ascott will look to expand its presence to more areas across the country.
Currently, 85 per cent of its India portfolio is concentrated in Tier-1 cities such as Bangalore, Chennai and Hyderabad.
Moving forward, the group will continue strengthening its presence in Tier-1 cities while simultaneously expanding its focus on fast-growing Tier-2 and Tier-3 cities.
This strategy is underpinned by rising interest in India’s lesser-travelled destinations and “the significant under-penetration of branded hotels in these cities”, said Lee.
Ascott also sees potential to bring its social living brand lyf to India to tap the country’s growing urban millennial and Gen Z workforce and rising digital nomad trend, Lee added.
Shares of CapitaLand Investment were trading up 5 per cent or S$0.12 at S$2.52 as at 2.35 pm on Thursday.
