Capitaland's wholly owned serviced residence business unit, The Ascott Limited (Ascott), is advancing in the fast-growing middle-class business hotel segment by investing about $26 million for a 70 per cent stake in Green Oak Hotel Management, the holding company for Tauzia Hotel Management (Tauzia). This is Ascott’s first major move into the lodging segment beyond its core serviced residence business and existing business in apartments for corporate lease.
Tauzia is one of Indonesia’s top five hotel operators. With its investment in Tauzia, Ascott will get an instant boost of close to 20,000 units spanning 122 hotels across Indonesia, Malaysia and Vietnam, half of which are under development. This puts Ascott’s portfolio at more than 94,000 units globally, surpassing its 2020 target of 80,000 units well ahead of time.
The majority of Tauzia’s portfolio are well-located in Indonesia, with close to 60 per cent in key cities such as Jakarta, Bali, Bandung, Surabaya and Yogyakarta.