Ascott expands footprint to Nha Trang with contract awarded by MIPEC

Citadines Bayfront Nha Trang will be Ascott’s third Citadines serviced residence in Vietnam

CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has secured a contract to manage its third Citadines-branded serviced residence in Vietnam, Citadines Bayfront Nha Trang. Citadines Bayfront Nha Trang is expected to be operational from 4Q 2016.

Citadines Bayfront Nha Trang is located in the heart of the prime Tran Phu district of Nha Trang, the key tourism and developing economic hub of South Central Vietnam. The property will add another 280 apartment units to Ascott’s Vietnam portfolio, bringing its total in the country to nearly 3,000 units in 17 properties across Hanoi, Hai Phong, Danang, Ho Chi Minh City, Nha Trang and Binh Duong.

The management contract was awarded by Military Petrochemical Joint Stock Company (MIPEC), which has been established since 2003 through the joint venture of three companies, namely General Import and Export Van Xuan Corporation (wholly-owned by The Ministry of National Defense), Vietnam National Petroleum Group and Military Commercial Joint Stock Bank.

Mr Dao Ngoc Thach, Chairman of MIPEC, said: “We appreciate the competence and credibility of Ascott and believe that with their experiences and professional, comprehensive management approach, Ascott will run Citadines Bayfront Nha Trang Project at the highest efficiency. The signing of this contract is the first step in the cooperation between both parties and the partnership in developing new strategic projects in the future.”

Mr Tony Soh, Ascott’s Chief Corporate Officer who oversees the company’s business and operations in Vietnam, said: “Citadines is one of our fastest growing brands globally. Since we fully acquired the Citadines Apart’hotel chain in 2004, we have more than doubled our Citadines portfolio from the initial 5,100 apartment units in 18 European cities to more than 14,000 units in over 50 cities across Asia Pacific, Europe and the Gulf region. Citadines’ impressive growth as a brand shows its compelling proposition of offering contemporary and stylishly furnished apartments with a flexible menu of services that allows individual travellers to personalise their stay experiences.”

Mr Soh added: “We continue to see significant growth opportunities for our international-class serviced residence business in Vietnam. Khanh Hoa province in particular has emerged as one of Vietnam’s key tourist hubs, experiencing visitor arrival growth of above 10% for six consecutive years since 2010. Nha Trang, being the capital city of Khanh Hoa province, has also benefited from the growing economy propelled by the shipbuilding and maritime sectors. With the expected completion of the new runway for Cam Ranh International Airport and the government’s plan to fully develop the Van Phong Economic Zone by 2020, we anticipate growing demand for quality accommodation in this coastal city to grow further, not only from the short- stay tourist segment, but also from the long-stay business segment.”

Mr Mark Chan, Ascott’s Country General Manger for Vietnam, said: “We are delighted to have the honor and privilege of working with MIPEC for the first Citadines Apart’hotel serviced residence in Nha Trang. Nha Trang attracts foreign travellers for its pristine beaches as well as vibrant atmosphere. Citadines Bayfront Nha Trang’s prominent location along the Tran Phu Street beside the Nha Trang Beach, along with the property’s cleverly-designed spaces, modern amenities and flexible services will make it the preferred accommodation for both leisure travellers and working executives in the city.”

The other two Citadines properties, Citadines Regency Saigon and Citadines Central Binh Duong, will be ready in 2018.