27 Oct

Ascott's Third Quarter Net Profit Surged Nearly Three Times To S$58.9 Million

Singapore, 27 October 2006 – The Ascott Group’s (Ascott) net profit for the third quarter of 2006 surged to S$58.9 million, an increase of nearly three times the net profit of S$15.9 million posted for the corresponding period last year. Ascott’s 3Q net profit of S$58.9 million and its net profit of S$139.8 million for the first nine months of this year also surpassed its full year 2005 net profit of S$41.9 million.

Ascott’s strong profit was not only underpinned by the realisation of portfolio gains from divestments, it was also supported by the Group’s strong operating performance.

Ascott’s properties in the Philippines (32%), Singapore (16%), the United Kingdom (14%), Vietnam (13%) and Indonesia (12%) registered double-digit growth in revenue per available unit (RevPAU) in the third quarter of 2006.

Mr Lim Chin Beng, Ascott’s Chairman, said: “The Ascott Group has once again achieved solid results. Its integrated business model with Ascott Residence Trust is a key competitive edge that no other serviced residence operator currently has. Ascott is able to continue to manage its divested serviced residences and earn management fees from them. This clearly demonstrates the management excellence of The Ascott Group.”

Mr Cameron Ong, Ascott’s Managing Director and CEO said: “Ascott has been expanding aggressively in new growth markets and existing markets where it operates. In the third quarter alone, we have made acquisitions and secured managements contracts in China, Singapore and India, a new market for us. With these acquisitions and contracts, we have added about 1,100 units to our portfolio, boosting our global presence to 17,000 units in 124 properties worldwide.”

“Our operations in majority of the markets did well in the third quarter. We have maintained our lead in these markets through our strong operating fundamentals, product and service enhancements, as well as innovative branding and marketing initiatives,” added Mr Ong.

More information



Group 3Q 2006 S$m 3Q 2005 S$m Change YTD Sep 2006 S$m YTD Sep 2005 S$m Change
Revenue * 99.2 112.2 -12% 303.7 331.4 -8%
27.6 39.4 -30% 88.0 104.7 -16%
Profit After Tax and Minority Interest (PATMI)
Net profit from operations excluding
foreign exchange #
Foreign exchange
Net portfolio gains
Basic earnings per share 3.7 cts 1.0 cts 2.7 cts 8.8 cts 2.3 cts 6.6 cts

n.m.: not meaningful

* The decreases in Ascott’s revenue and operating EBITDA were mainly attributable to Ascott’s divestment of 12 of its serviced residences to Ascott Residence Trust (ART) and the effects of foreign exchange rates changes. If the divestment to ART and effects of foreign exchange rates changes were excluded, Ascott’s revenue and operating EBITDA for the third quarter of 2006 would have increased by 10% and 5% respectively. Likewise, for the first nine months of this year, the Group’s revenue and operating EBITDA would have also increased by 9% and 8% respectively.

# Without the divestment to ART and effects of foreign exchange rates changes for the third quarter, Ascott’s net profit from operations for 3Q 2006 would have been S$14.3 million, an increase of 7% over S$13.4 million in the corresponding period last year. Similarly, Ascott’s net profit from operations for YTD Sep 2006 would be S$39.5 million vs S$31.6 million in YTD Sep 2005, an improvement of S$7.9 million or 25%.

About The Ascott Group

The Ascott Group is the largest international serviced residence owner-operator outside the United States with close to 17,000 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.

The Group operates three brands –Ascott, Somerset and Citadines in 43 cities in 18 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Pattaya, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Xi’an, Hong Kong, and Chennai in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand as well as Dubai in the Gulf region.

The Ascott Group is headquartered in Singapore. It pioneered Asia Pacific's first branded luxury serviced residence in 1984. It also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. Today, the Group boasts a 22-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Ascott Group’s achievements have been recognised internationally; it has clinched numerous prestigious awards including ‘Best Serviced Residence’ at TTG Travel Awards 2006, the top honour at the 2006 World Travel Awards, Business Traveller Asia Pacific’s 2006 ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence’ awards, ‘Most Outstanding International Brand’ award from Apartment Living magazine in Thailand, ‘2006 Korea Top Brand’ award by Seoul Economy newspaper, Korea Herald’s ‘Readers’ Best Brand Awards 2006’, ‘2006 Best Company & CEO’ award from the Herald Business in Korea, the ‘Best Serviced Residence Brand’ award by Lifestyle + Travel magazine in Thailand, the ‘Innovative Capital Venture’ award at the 2006 China Hotel Investment Summit, 2006 ‘China’s Top 100 Serviced Apartments’ award, Korea Times’ ‘Best International Serviced Residence Brand’ award, the ‘Highly Commended Deluxe Accommodation’ award at the 2005 Tasmanian Tourism Awards, ‘Best Accommodation’ at the 2005 World Travel Awards, TTG Asia Media’s 2005 ‘Best Serviced Residence Operator’ award, and the Business Traveller Asia Pacific’s 2005 ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence’ awards. For a full list of awards, please visit : https://www.the-ascott.com/aboutus/awards_and_accolades.html?year=2007

Listed on the mainboard of the Singapore Exchange, The Ascott Group is the serviced residence arm of CapitaLand Limited, one of Asia’s largest listed real estate companies. Headquartered in Singapore, the multinational company's core businesses in property, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. Its property and hospitality portfolio spans more than 80 cities in nearly 20 countries. 

Celina Low, Vice President, Corporate Communications

Tel: (65) 6586 0475 

Hp: (65) 9682 5458 

Email: celina.low@the-ascott.com

Joan Tan, Senior Manager, Corporate Communications

Tel: (65) 6586 0474 

Hp: (65) 9743 9503 

Email: joan.tan@the-ascott.com

Lilian Goh, Head, Investor Relations

Tel: (65) 6586 7231  

Hp: (65) 9795 5225  

Email: lilian.goh@the-ascott.com