)
Singapore-based world’s largest serviced residence operator Ascott Limited is bringing its luxury brand Ascott in India after entering the Indian market two years ago with its brands Citadines and Somerset.
The company has tied up with Ireo private equity fund for setting up its first property in Gurgaon. Ireo will start the construction by the end of this year. It expects the property to be operational by 2016-17.
“Gurgaon has emerged as a fast growing commercial hub on the international map, attracting business travellers and expats from across the globe but lacks good international quality branded serviced apartments,” said Pankaj Dugar, hospitality head, Ireo.
The private equity fund will invest Rs 250 crore in developing the 220 unit Ascott branded residences along with a retail space in its four acre land parcel in Gurgaon. It is also planning to sell some of its units to interested buyers who can also then rent in further, during the development phase itself.
Ascott claims to have a dedicated clientele in the corporate sector which includes most of the Fortune 500 companies. It caters to top executives looking for an accommodation for a minimum period of three to six months. The tariff for a one bed room set up starts at Rs 2,60,000 a month.
The company has invested $150 million in the Indian market for expansion of its brand. The company is adopting a three pronged approach in its business model for India which includes signing management contracts, franchisee agreements and also wholly or co-owned properties.
“In the long term we will exit the investment but retain the management contract. We will remain true to our calling and stick with branded residences business instead of hotels,” said Alfred Ong, Managing Director, Strategic Development, The Ascott Limited.
The company has six more properties under development, mostly under its brand Citadines across Bangalore, Chennai, Ahmedabad and Hyderabad.
Although unlike a hotel property, none of its serviced apartment brands has banquet halls or food and beverage options, Ascott International may provide these facilities in India wherever needed.
Ireo is keen to partner with Ascott for further expansion. The PE fund has raised $2 billion and accumulated land parcels up to 4,500 acre across India in places like Chennai, Goa, Ludhiana etc. The land will be used for hospitality and real estate related projects.
Ascott’s portfolio spans over 70 cities across more than 20 countries.
