SINGAPORE – CapitaLand Investment (CLI) is considering divesting a stake in its hospitality business, The Ascott Limited, to accelerate its growth.
Chief executive Lee Chee Koon said at the real estate manager’s results briefing on Aug 13 that Ascott’s steady growth has attracted interest from investors and limited partners, and having another investor could help grow the business further.
“We don’t need to hold 100 per cent of Ascott,” Lee said.
“We are open-minded, we don’t mind bringing in an investor that can be helpful to our mergers and acquisitions ambitions, and strengthen the distribution of our capabilities.”
Divesting part of CLI’s stake in Ascott could give it greater flexibility to launch new fund strategies and expand its private and listed funds, which have become central to its business since it shifted away from property development.
Asked whether bringing in another investor could affect Ascott’s profit contribution or operations, Lee said CLI had not decided how much it might sell. He stressed that Ascott would remain an important part of CLI’s business.
He added that the idea to sell a stake in Ascott would be separate to CLI’s plan to divest around $7 billion to $9 billion from its legacy funds and assets, as well as its non-core holdings in real estate investment trusts and private funds.
Lee’s comments come as CLI approaches the end of a five-year transformation plan launched in 2021. Having turned around its performance, the fund manager is now seeking to accelerate growth.
CLI recorded a 13.9 per cent increase in net profit to $327 million for the first half of the financial year ended June 30, up from $287 million a year ago. It attributed its growth to higher fee income from its fund management platforms, which saw revenue grow 20 per cent to $687 million year on year.
Total revenue for the six-month period fell 2 per cent to about $1 billion, mainly due to the absence of contributions from divested assets and deconsolidation. Still, revenue has stabilised after a 24 per cent drop a year ago.
Ascott, which was acquired by CapitaLand in 2008, saw fee-related revenue grow 4 per cent year on year for the first half of 2026, on the back of better performance from existing properties and contributions from new properties.
Fee-related revenue comprises income from the managing and franchising of its hotels, serviced apartments and other lodging businesses, rather than physically owning the properties.
96 per cent of Ascott’s portfolio is under management and franchise contracts, supporting a “scalable asset-light” growth model. It saw an increase of around 8,400 units across more than 40 properties in the first half of 2026, bringing the total pipeline to around 67,000 units.
