Investment In India | "Ascott looks to buy properties in Mumbai, Delhi"

By:  Sangeetha G.
Source: http://wrd.mydigitalfc.com
Category: Investment In India

With a focus on high-growth business cities, international serviced residence provider Ascott is looking at the option of acquiring or managing existing properties in cities like Mumbai and Delhi, apart from investing in greenfield projects

The company is currently in the process of developing five properties with more than 1,100 apartment units in Ahmedabad, Bangalore, Chennai and Hyderabad. Along with two properties under operation in Bangalore and Chennai, the company plans to invest $250 million in India by 2015.

“Our strategy for India is to expand in high growth cities where there is strong demand for international-class serviced residence from foreign expatriates and business travellers. Apart from the four cities where our properties are under development, we are looking at extending our footprint to other key business cities across India including Mumbai, New Delhi and Pune through acquisitions and management contract,” said Ajit Koushik, Area General Manager, India, Ascott International Management.

According to Koushik, there is a supply-demand gap for quality accommodation for extended stay in India.

“With the increase in FDI into the country, the number of international arrivals into the country has also increased over the last few years. As per World Travel and Tourism Council estimates, international tourist arrivals estimated to increase more than 80 per cent from over six million in 2011 to over 11 million by 2021. Foreign expatriates and business travellers coming to India on extended stays of more than a month are no longer satisfied with 300 sq ft hotel rooms. They prefer larger spaces that provide a home-like atmosphere complemented by the services and facilities of a hotel,” he said.

According to him, serviced apartments are not too much impacted by fluctuations in occupancy and seasonality in business as in the case of hotels. He finds that development in sectors like IT and ITeS, banking, automobile and manufacturing are the growth drivers for the serviced residence industry.

“In India, more specifically in Bangalore and Chennai, where we currently have properties in operation, the growth drivers are different for each market. In Bangalore, the main contribution to our business comes from the IT/ ITeS and banking industries. Whereas in Chennai, most of our clientele is from the manufacturing and automobile industries,” he said.

With operations in 70 cities of 21 countries, Ascott expects to leverage its brand value among expatriates travelling to India.

“We have a global clientele of multinational companies which operate in the Indian market and we will be attracting the same. We will be leveraging our strong international operational expertise and brand recall to deliver proven quality in products and services”, he added.

Source: http://wrd.mydigitalfc.com/news/ascott-looks-buy-properties-mumbai-delhi-462