The Ascott Group’s net profit from operations more than doubled from S$1.8 million in 1Q 2006 to S$3.8 million for 1Q 2007, despite the divestment of 15 properties last year. The Group’s majority serviced residence operations achieved impressive growth in overall revenue per available apartment unit (RevPAU) from S$109 in 1Q 2006 to S$124 in 1Q 2007 on a same store basis.

Mr Cameron Ong, Ascott’s Managing Director & CEO said: “Business and market sentiments in Asia and Europe remain positive and will continue to drive RevPAU growth for The Ascott Group’s serviced residences. The Group’s operating performance and portfolio gains in 2007 are expected to remain strong and profitable.”

Similarly, Ascott Residence Trust (ART) has also posted positive results for 1Q 2007. For the period 1 January 2007 to 31 March 2007, ART achieved a net distributable income of S$8 million for unitholders – a 10% increase above forecast.

Ascott has entered into a sale and purchase agreement with Jing Wealth Enterprises Limited to acquire a 100% stake in an existing serviced residence, Ying Biao Garden Apartment, located in Shanghai’s Pudong New District. The property will be branded as Citadines Shanghai Biyun and is targeted to re-open in the first half of 2008 with 182 units after refurbishment. The property is located at Lane 450, Hong Feng Road in Pudong. It is a five-minute and 10-minute drive from Jinqiao Export Processing Zone, and Zhangjiang High-Tech Park respectively.

In Xi’an, Ascott has signed a sale and purchase agreement with Skillplus Enterprise Pte Ltd to acquire a 75% stake in a building located at Beilin District, which will be developed into Citadines Xi’an Central. Ascott was awarded the contract to manage the 162-unit property in April last year. Located at No. 119, Zhubashi Street, Nanyuan Men in Beilin District, the property is a stone’s throw away to Xidajie Street, the main shopping street in Xi’an, and a 30-min drive to Xi’an National Hi-Tech Industrial Development Zone. The property is targeted to be opened in the second half of 2007.

Despite keen competition in China’s hospitality market, Ascott remains the largest leading international serviced residence company in China. These acquisitions will increase Ascott’s China portfolio by more than 340 serviced residence units to a total of about 3,700 units in 19 properties.

The Ascott Group has bagged a contract from Ascott Residence Trust (ART) to manage Ascott Makati, located at Ayala Center Glorietta in Manila CBD area. The former Oakwood Premier Ayala Center serviced residence was acquired by ART last year, and was rebranded in March 2007.

Ascott Makati is a 21-storey building with two towers of serviced residences. The 306-unit property has comprehensive facilities such as a fitness centre, gymnasium, swimming pool, business centre, meeting rooms, tennis courts and a restaurant.

With improving FDI and increasing business travellers into the Philippines, the Group is confident in capturing a larger market share. Ascott is the largest branded serviced residence operator in Manila. With the addition of Ascott Makati, the Group’s portfolio in the country stands at four properties with a total of 728 units.

Ascott’s drive to introduce top-class serviced residences in the Gulf region could not have been better timed with the 118-unit Somerset Al Fateh receiving its first guests on 10 April 2007 in Bahrain.

Bahrain has one of the fastest growing and freest economies in Gulf region. With increased budget spending to develop all sectors of the economy, this will translate into increased business travellers and an enlarged expatriate community that requires premium quality accommodation.

Ascott’s strategy is to gain a foothold in the key gateway cities in the Gulf region. As such, a master development agreement was signed with Addax Investment Bank last year to launch at least 15 serviced residences across the Middle East and North Africa by 2010. Somerset Al Fateh is one of the 15, with Somerset West Bay, Doha being the other one.

Ascott now has properties in Bahrain, Qatar and Dubai with 402 units.