Ascott, the residence business unit of CapitaLand, has announced it will invest US$26 million for a 70 per cent stake in Green Oak Hotel Management, the holding company for Tauzia Hotel Management in Indonesia. Tauzia’s existing portfolio includes properties in Indonesian locations such as Jakarta, Bali, Bandung, Surabaya and Yogyakarta. The majority of these cater to business travellers and the MICE sector.
The deal involves a total 122 hotels across Indonesia, comprising around 20,000 individual units. Tauzia also has additional properties currently under development in Malaysia and Vietnam, which are also included. This takes Ascott’s portfolio to a total of more than 94,000 units worldwide.
“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 Kevin Goh, Ascott’s CEO in a recent statement. “On top of the units under Tauzia, we see potential to add another 20,000 keys over the next five years across Southeast Asia. This will increase our hotel portfolio to over 41,000 keys, constituting about 25 per cent of our 160,000-unit target by 2023,” he continued.
Tauzia has six in-house lifestyle brands, including the mid-tier Harris Hotels; Fox Harris Hotels; Yello Hotels; economy POP! Hotels; upscale boutique hotels Tauzia’s PrÃ©fÃ©rence brand; and high-end business Harris Vertu Hotels. In Indonesia, Ascott has 17 serviced residences and more than 3,000 units across Jakarta, Bali, Bandung, Karawang, Makassar, Surabaya and Yogyakarta.