Singapore-based Ascott eyes Bangladesh's hospitality market

Infogarphic: TBS

Singapore-based global hospitality giant, The Ascott Limited is eyeing Bangladesh as a potential growth market and is open to partnering with local property owners to bring its international hotel and serviced-residence brands to the country.

"Bangladesh is a market we are watching closely as part of our growth strategy in South Asia. The combination of business and leisure demand in destinations such as Dhaka, Chattogram and Cox's Bazar makes it a promising market for Ascott," an Ascott spokesperson told The Business Standard via email following an in-person conversation in Singapore.

The company, however, does not have any confirmed project to announce in Bangladesh at this stage. "While we don't have confirmed plans to share at this stage, we remain open to exploring partnerships with like-minded property owners to bring our brands and concepts."

Ascott's interest comes as Bangladesh's hospitality market continues to see demand from business travellers, tourists, expatriates and long-stay visitors, particularly in Dhaka and major tourism destinations such as Cox's Bazar.

"That demand profile is well suited to our flex-hybrid business model, which caters to different traveller needs, from short business and leisure stays to extended stays and relocation," the spokesperson said.

Asset-light expansion strategy

Unlike a conventional property investment model, Ascott primarily expands through management and franchise partnerships, allowing property owners and investors to develop or convert properties under its international brands without requiring Ascott to make the entire capital investment itself.

Ascott's growth as a global company is asset-light by design, driven by management and franchise partnerships rather than direct capital investment, the company said. Under this model, Ascott brings its hospitality expertise, operating systems and brands, while property owners can benefit from international management and distribution networks.

Across serviced residences, hotels, resorts, social-living properties and branded residences, the company works with property owners to address demand gaps, create distinctive guest experiences and generate long-term value.

Bangladesh fits its brand portfolio

Ascott has a diverse portfolio of brands covering the upper-midscale, upscale and luxury segments, giving property owners flexibility to target different categories of travellers.

Its brands include Ascott, Citadines, lyf, Oakwood Premier, Oakwood, Somerset, The Crest Collection, The Unlimited Collection, Adoor Apartment, Adoor Suites, Fox, Harris, POP!, Preference, Quest, Vertu and Yello.

The Ascott Limited is a wholly owned business unit of CapitaLand Investment Limited.

The company currently has more than 1,000 properties across over 230 cities in more than 40 countries, with a presence spanning Asia Pacific, Central Asia, Europe, the Middle East, Africa and the US. In South Asia, Ascott has 27 properties, mainly in India.

The general manager of a five-star hotel in Dhaka's Gulshan area told TBS, "The business model followed by global hospitality chains like Ascott is well-suited to Bangladesh. Local businesses are also looking for such opportunities to partner with global chains."

Bangladesh's first tourism master plan aims to attract 5.57 million foreign tourists by 2041. In recent years, Bangladesh has drawn over 0.6 million foreign passport holders annually.

Sustainability becomes growth priority

During a recent visit by a group of journalists from across Asia, including this correspondent, to three Ascott properties in Singapore, the company showcased how sustainability and innovation are being incorporated into its hospitality operations.

Siew Kim Beh, chief financial and sustainability officer at Ascott, said sustainability is being implemented across its properties in different ways.

"Across our properties, sustainability comes to life in different ways: from AI-powered cooling optimisation for energy efficiency and more accessible guest journeys for persons with disabilities, to initiatives that encourage guests to make more sustainable choices during their stay," she said.

At lyf Funan Singapore, the company showcased some of these initiatives, including a farm-to-table tea tasting using ingredients grown on the property's rooftop farm.

Ascott launched Ascott CARES, its global sustainability framework, in 2022. The framework is built around the Global Sustainable Tourism Council (GSTC) Standards and integrates environmental, social and governance (ESG) considerations into the company's operations and growth strategy.

Since then, Ascott has achieved GSTC-Committed Status, expanded GSTC certification across its portfolio and established science-based climate targets, including a target of net-zero Scope 1 and 2 emissions by 2050.