Ananda Kickstarts the New “Serviced Apartment”
Ananda Kickstarts the New “Serviced Apartment”
Ananda Kickstarts the New “Serviced Apartment” Business by Partnering with Ascott to Launch 4 Projects Valued at Over 10 Billion Baht Under Strong Confidence in the Continuous Growth in Demand of Foreigners, Entrepreneurs, and Tourists
Ananda Development Public Company Limited, one of Thailand’s leading developers of condominiums near the BTS skytrain, launched its new business to penetrate into the “serviced apartment” market, marking a milestone in partnering with the internationally recognized alliance, The Ascott Limited (“Ascott”). The two companies are preparing to launch four new projects with the value of over 10 billion Baht, comprising more than 1,400 units. All four projects are set on a prime location in the heart of Bangkok’s new CBD. The first project to be launched is Somerset Rama 9 Bangkok, which is valued at 2.5 billion Baht, totaling 455 units. Ananda discerns the opportunity in expanding its business, perceiving that this investment will generate continuous income in the long run under a strong confidence in the continual demand growth of foreigners, entrepreneurs, and tourists – all of which are the main target market.
Mr. Chanond Ruangkritya, the President and CEO of Ananda Development Public Company Limited, stated that the Company is planning to expand into the “serviced apartment” business with the belief that this business model can generate income to the Company in a long run. In addition, the Company recognizes the growth potential of the serviced apartment market and the tourism sector of Thailand on account of the fact that Thailand is the regional trading hub of Southeast Asia with abundance in natural resources, as well as picturesque arts and culture that attract an increasing number of tourists each year. With that respect, the serviced apartment market has been enjoying continuous growth over the past years. Recently, Ananda announced its partnership with Ascott, the global leading serviced residence company that is recognized by numerous awards and accolades, to strengthen and attain exclusive standards of the serviced residences.
“The average rental vacancy rate of serviced apartments in Bangkok is over 74% and can reach to nearly 90% in some areas. The central business district and Sukhumvit areas are the most popular location amongst foreigners or expatriates who work in Bangkok. Hence, the average rental vacancy rate of these areas is approximately 80% due to convenient transportation by BTS skytrain and the availability of facilities.”
As a result of this collaboration, the two companies are preparing to launch four projects with the value of over 10 billion Baht, comprising more than 1,400 units. The first project to be launched is the Somerset Rama 9 Bangkok Project, which is valued at 2.5 billion Baht, totaling 455 units, while the other three projects are underway. All four projects are located in the prime location of Bangkok. With the unparalleled standards and the expertise of Ascott in the management of serviced residences, all owners and residents can be assured of the quality and professionalism in the provision of services. These four projects are therefore unique and notable in terms of the location, luxury services, and professional management.
The Somerset Rama 9 Bangkok Project is a serviced apartment brand that is internationally recognized and renowned. It features one high-rise building, comprising 35 floors and 445 units, along with retail spaces, conference rooms, and an array of facilities. The project is located in Rama 9 district, which is the new CBD that is surrounded by numerous office buildings, such as the Stock Exchange of Thailand, Super Tower, AIA Capital Center, G Tower, Fortune Town, and The 9th Tower. In addition, the project is within close proximity to various department stores and facilities, including Central Rama 9, Esplanade Cineplex, The Street Ratchada, Rama 9 Hospital, and Piyavate Hospital. Residents can conveniently travel by the underground train, concerning the fact that the project is only 100 meters away from Rama 9 MRT station, 200 meters from Thailand Cultural Center MRT station, and only one station to Makkasan Airport Rail Link station that provides direct access to Suvarnabhumi Airport.
Mr. Kevin Goh, the CEO of The Ascott Limited, stated, “We are honored to have been selected by Ananda, one of Thailand’s leading real estate developers and the pioneer of residences for the urban society, to collaborate on the residential projects. Ascott’s global network of nearly 100,000 corporate clients will enable us to create cross-marketing opportunities across the globe. Moreover, our strength in service provisions, in combination with the expertise of Ananda in real estate development, will accommodate us to achieve our target of 14 properties in Thailand by 2023. We strongly believe that these four projects will be the starting point of an efficient and successful partnership. This collaboration between Ananda and Ascott will instill confidence in Thailand, which is the major market for Southeast Asia and other regions across the globe. We are confident in achieving our global target of 80,000 units this year, and to double our portfolio to 160,000 units by 2023. In Thailand, we plan to expand our portfolio by 1,600 units from the current 4,300 operating serviced residence units by 2024, including the four projects under collaboration with Ananda that will strengthen our leadership as the largest serviced apartment operator in Thailand.”
Mr. Kevin further added, “All four serviced apartment projects of Ananda will increase our portfolio in Thailand to 21 properties or over 4,300 units across Bangkok, Pattaya, and Sriracha. As of present, Ascott has more than 43,000 operating serviced residence units in major cities of the United States, Asia Pacific, Europe, Middle East and Africa, and over 29,000 units under development, therefore totaling over 74,00 units in more than 500 properties. Ascott has a total of six serviced residence brands, namely Ascott, Citadines, Somerset, Quest, The Crest Collection, and Lyf. Currently, our portfolio spans more than 130 cities in over 30 countries across the globe.”