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The Ascott Limited, CapitaLand’s fully-owned serviced residence business unit, has invested US$26 million for a 70 percent stake in Green Oak Hotel Management, which is the holding company for TAUZIA Hotel Management (TAUZIA).
The investment in TAUZIA, one of the top five hotel operators in Indonesia, will give Ascott an instant boost of close to 20,000 units spanning 122 hotels in Indonesia, Vietnam and Malaysia. This brings Ascott’s global portfolio to more than 94,000 units, exceeding its 2020 target of 80,000 units.
In an SGX filing, Ascott noted that the majority of TAUZIA’s portfolio are well-located in Indonesia, with close to 60 percent in key cities such as Bali, Jakarta, Surabaya, Bandung and Yogyakarta. It added that around 70 percent of TAUZIA’s hotels cater to convention and business travellers, while 30 percent are targeted at leisure travellers.
“TAUZIA’s fastest growing mid-tier business hotels will enable us to capture the ballooning middle-class segment in Asia, which will be home to two-thirds of the world’s middle-class by 2030,” said Ascott CEO Kevin Goh.
“So besides strengthening TAUZIA’s presence in Indonesia, we will be leveraging Ascott’s global network of about 100,000 corporate clients to bring TAUZIA to international markets,” he said.
“Markets with immediate demand include Malaysia, the Philippines, Thailand and Vietnam, as well as secondary cities in Cambodia, Laos and Myanmar. Prior to our investment in TAUZIA, we have 10 business hotels with about 2,000 keys in our portfolio.”
Meanwhile, TAUZIA founder Marc Steinmeyer said the company’s partnership with Ascott “will elevate TAUZIA to an international platform, bringing us to more geographies beyond Indonesia”.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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