Beyond being y Theirst Ascott Group Limited Annual Report 2007 Contents 08 About The Ascott Group Vision, Core Purpose, Core Values 10 Leading Brands 11 Awards 12 Ascott Across the World 13 Year in Review 16 Key Achievements in 2007 18 Management 24 Milestones 2007 26 In Step with the Corporate Traveller 28 Extending the Ascott Reach 32 Residents’ and Community Programmes 35 Our People, Our Future 38 Financial Review Balance Sheet Consolidated Income Statement 44 The Ascott Group Directory 52 Corporate Office This Annual Report is printed on Forest Stewardship Council (FSC) certified paper. y Beyond being At The Ascott Group, beingirst first means more than just being a business leader and an industry pioneer. It’s about knowing where our successes come from. Which is why we put our residents first. In everything we do – whether it’s changing the way we do business, opening a serviced residence in a new location or helping the local communities – we care about how our customers feel when they stay with us. We want them to experience the freedom and familiarity of home, and most of all, to discover the warmth of our hospitality, so that they can experience life to the fullest. Because when our residents are happy with us, we know we have made it. The moment I arrived, I felt like we were home. They have created a sense of familiarity almost effortlessly. The service was subtle, discreet, yet I could feel the warmth in all that they do for me and my family. It was a good y impression. We will certainly be back. irst Pr oviding over 20,000 homes around the world Ent ered 10 more cities and 3 more countries My y time in a different country? It wasirst like a dream come true. I saw new things, new culture, new faces. But most of all, I saw a new angle to my work that would help make Ascott’s presence felt here. What does y mean to me? It’s about claimingirst a space no one has claimed before. It motivates me to raise the bar, to create benchmarks where there were none before. Launched1st private equity fund dedicated to investing in serviced residences across China About The Ascott Group The Ascott Group is the world’s largest international serviced residence owner-operator with about 15,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as over 6,000 units which are under development, making a total of about 21,000 units. The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 55 cities in 23 countries, 13 of which are cities where Ascott’s serviced residences are being developed. 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 24-year industry track record and serviced residence brands that enjoy recognition worldwide. The Ascott Group is the serviced residence arm of CapitaLand Limited, the largest listed real estate company in Southeast Asia by market capitalisation. Headquartered in Singapore, the multi-national company’s core businesses in real estate, hospitality and real estate financial services are focused in growth cities in Asia Pacific, Europe and the Gulf Cooperation Council (GCC) countries. The company’s real estate and hospitality portfolio spans more than 100 cities in over 20 countries. 08 About The Ascott Group Vision The leading international serviced residence company with global brands, and products and services that set new industry benchmarks. Core Purpose To contribute to the well-being and success of people who live and work away from home. Core Values Excellence We strive for excellence in serving our customers. We challenge industry norms with our performance. Innovation We relentlessly search for and create new ways to improve our products and services to delight our customers. Integrity We are fair and honest in our dealings with colleagues, business partners and customers. Our Team Our different perspectives energise our team. We achieve better results as a team than we can individually. Developing Our People We create an environment that attracts and nurtures talent. Our jobs are more than just work; they are avenues for our growth. About The Ascott Group 09 Leading Brands The Ascott Group offers exclusivity, hospitality and the best of global living. No matter where work or leisure takes you, we have a serviced residence specially designed to meet your needs and pleasantly surpass your expectations. Make your selection from our three award-winning brands and bask in the warmth of home wherever you are in the world. Ascott International... because life is about living. ASCOTT SOMERSET CITADINES THE RESIDENCE SERVICED RESIDENCE APART’HOTEL Prestigious and luxurious, Ascott Warm and caring, Somerset is ideal Vibrant and flexible, Citadines is for The Residence lavishes business for executives and their families looking individuals on the go. Just choose the travellers with excellent service in for work-life balance. Enjoy a warm and services you want to suit your lifestyle an exclusive environment. So you can stylish home with many recreational and budget. And enjoy all the freedom relax and recharge, and function at facilities and lifestyle activities. to experience the city, your way. peak performance. 10 Leading Brands Awards The Ascott Group’s outstanding achievements have been recognised internationally for its brand, property and corporate management excellence. Best Foreign-Invested Enterprise Best Serviced Residence (Group) Australasia’s Leading Hotel (Vietnam) The Ascott Group Ascott Auckland Metropolis The Ascott Group TravelWeekly Asia Industry Awards World Travel Awards 2006 Golden Dragon Award Jun 2007 Nov 2007 Vietnam Economic Times, in conjunction with Ministry of Planning and Investment Luxury Premier Serviced Residence New Zealand’s Leading Hotel (Vietnam) Somerset Palace Seoul Ascott Auckland Metropolis Feb 2007 The Korea Times World Travel Awards Jun 2007 Nov 2007 50 Best Employers in Vietnam Ascott International Vietnam China’s Best Serviced Apartments Best Serviced Residence Brand Navigos Group, in association with – Ascott Beijing in China Thanh Nien newspaper and AC Nielson – Ascott Shanghai Pudong – Ascott The Residence (First place) Apr 2007 – Somerset Olympic Tower, Tianjin – Somerset Serviced Residence Forbes China (Third place) Top 100 Serviced Apartments Award Sep 2007 Business Traveller China Awards – 1st Position (China) Nov 2007 The Ascott Group Best Serviced Residence Company China Association of Real Estate, The Ascott Group Luxury Premier Serviced Residence World Real Estate Academy, Business Traveller UK Awards Somerset Palace, Seoul World Executive Weekly Magazine, Sep 2007 The Korea Times The Wall Street Wire and China Consumer Nov 2007 Report website Best Serviced Residence in Asia Pacific Apr 2007 Ascott Shanghai Pudong Best Serviced Residence Business Traveller Asia Pacific Awards – Inbound and Outbound International Headquarters (IHQ) Award Sep 2007 The Ascott Group Ascott International Management TravelWeekly China Industry Awards (2001) Pte Ltd Best Serviced Residence Brand Dec 2007 Economic Development Board in Asia Pacific (Singapore) Ascott The Residence Serviced Apartment Vendor May 2007 Business Traveller Asia Pacific Awards of the Year (Runner-up) Sep 2007 Ascott International BCA Green Mark Award HR Vendors of the Year Ascott Singapore Raffles Place The Most Transparent Company Human Resources Magazine Building and Construction Authority – Hotel & Restaurants (Runner-up) Dec 2007 (Singapore) The Ascott Group May 2007 SIAS (Securities Investors Association of Singapore) Investors’ Choice Awards Excellent Performance for 2006 & 2007 Oct 2007 Somerset Serviced Residence Vietnam Guide Award Best Serviced Residence Operator Vietnam Economic Times’ The Ascott Group The Guide Magazine TTG Travel Awards Jun 2007 Oct 2007 Awards 11 Ascott Across the World United Kingdom Russia Moscow Germany Edinburgh, London Belgium Brussels Berlin, Munich Kazakhstan Aktau, Astana France Georgia Tbilisi Paris and 12 other cities South Korea Seoul United States Spain Japan Kyoto, Tokyo (presence in over 100 cities Barcelona Bahrain Manama China Beijing, Chongqing, Dalian, through marketing alliance Guangzhou, Hong Kong, Shanghai, with Equity Residential) United Arab Emirates Shenzhen, Suzhou, Tianjin, Xi’an Qatar Dubai Doha Thailand Bangkok The Philippines Manila India Vietnam Hanoi, Ho Chi Minh City Bangalore, Chennai, Malaysia Kuala Lumpur, Kuching Singapore Hyderabad Indonesia Jakarta, Surabaya New Zealand Auckland Australia Hobart, Melbourne, Sydney SOUTHEAST ASIA Hong Kong EUROPE Kazakhstan Indonesia Shanghai Belgium Aktau Jakarta Shenzhen Brussels Astana Surabaya Suzhou 1 57 Tianjin France Russia Malaysia Xi’an Paris Moscow properties Kuala Lumpur and 12 other cities: Kuching Japan Aix-En-Provence Spain Kyoto Bordeaux Barcelona Singapore Tokyo Cannes Ferney-Voltaire United Kingdom Thailand South Korea Grenoble Edinburgh Bangkok Seoul Lille London 55 Lyon The Philippines SOUTH ASIA Marseille GULF REGION cities Manila India Montpellier Bahrain Bangalore Nice Manama Vietnam Chennai Strasbourg Hanoi Hyderabad Toulouse Qatar Ho Chi Minh City Doha AUSTRALIA & Georgia NORTH ASIA NEW ZEALAND Tbilisi United Arab 23 China Australia Emirates Beijing Hobart Germany Dubai countries Chongqing Melbourne Berlin Dalian Sydney Munich Guangzhou New Zealand Auckland 12 Ascott