Ascott’s Oakwood portfolio grows by more than 20% after acquisition in 2H2022
Apartments Taman Mini Jakarta and Oakwood Makati Avenue, recently won by another operator, represent two recent successes managed by them.
The Ascott has revealed that their Oakwood portfolio has experienced growth of more than 20% since purchasing Oakwood Worldwide during 2H2022. Although no official cost estimate was provided by them, estimates place it between $40-50 million.
The group has yet to disclose the cost of its purchase, though estimates place it between $40-50 million.
July 4th 2022, an official announcement was made of this meeting. At that time, 8500 keys out of 15 000 were operational. The fee-related earnings per 10,000 operational keys and stabilized keys is approximately $20 million. Ascott has refreshed the Oakwood brand across all Oakwood properties. The Oakwood name has not changed.
Ascott has now expanded Oakwood to 48 new cities. These include Busan, South Korea, Batam, Bali, Penang, Kota Kinabalu, Malaysia, Visakhapatnam and Chennai in India, and Navi Mumbai, Ha Long, Vietnam.
The Oakwood brand has seen a growth of more than 20% since its acquisition. It is now one of the most rapidly growing global brands within the Ascott portfolio.
Ascott stated in its press release that the integration of Oakwood into its ecosystem has helped increase revenue and improve operational efficiency with cost synergies.
Oakwood Hotel & Apartments Taman Mini Jakarta and Oakwood Makati Avenue are two recent new wins managed by another operator.
Ascott’s ability leverage pricing power to meet market demand and increase revenue is a testament to its ability to improve the financial performance of Oakwood after acquisition.
Ascott’s recurring income is boosted by the Oakwood portfolio, as more properties are operationally ready and coming online faster. This is in line with Ascott’s goal to double its fee income to over $500 million dollars by 2028.
Ascott has already launched 70 properties worldwide, which is equivalent to 13,500 units across all brands.
Ascott will pursue transformational deals that can speed up our expansion, provide us with access to diverse customer bases and valuable synergies, and give us immediate access to new market. Inorganic growth has strategic benefits that go beyond incremental growth. It also helps the group to achieve economies of scale and streamline operations.
In response to the rise of bleisure, which is a combination of business and pleasure, we’ve tapped into Oakwood’s understanding of corporate travel in order to launch a brand refresh aligned with the current needs of today’s business travellers.
The Oakwood brand has been refreshed to offer thoughtful amenities in the properties and productivity tools for business travellers looking to extend their stay to enjoy leisure activities.
Oakwood’s brand is characterized by the Oakroom, an inviting lobby that welcomes guests in a familiar atmosphere, the Oakroom offers a variety of dining options; there are food-related activities and events, and Oakwood GEM ambassadors, who are warm and professional.
Oakwood’s brand refresh follows the refreshed Citadines and Somerset brands that were launched in the past two years. Ascott’s Brand-360 is a group-wide initiative to strengthen the brand portfolio by sharpening brand stories, and introducing signature experiences and programs unique to each brand.