One of the largest international serviced residence owner-operator outside the United States, Ascott International pioneered Asia Pacific's first branded luxury serviced residence in 1984. Today in China they operate over 3,500 serviced residence units, a number that they plan to grow to 10,000 by 2010.

Overseeing their operations in China is Singaporean Lucus Loh, Managing Director for Ascott International, China and Senior Vice-President for The Ascott Group. He has been instrumental in building Ascott's presence in North Asia, through identifying business opportunities and forging strategic business alliances.

As Managing Director of Ascott International, China and Senior Vice-President of The Ascott Group, what are your main responsibilities and how many people and properties do you oversee?
I oversee the operational performance of Ascott's properties in China and also spearhead the business development in the country. From our first property in Tianjin in 1998, we have since expanded to 18 properties in eight cities in China, including Hong Kong. Our current portfolio in China stands at over 3,500 units with a total staff strength of almost 1,500.

Many travelers have bemoaned the lack of good serviced apartments in Beijing, while Shanghai has many options. Why do you think Beijing's serviced apartment sector developed differently from Shanghai?
There are several excellent serviced apartments in Beijing as well. One of the reasons why the serviced apartment sector has moved in different directions could be due to the difference in guest profiles.

The Shanghai market also started earlier than Beijing. With the establishment of Shanghai as a key commercial and financial city and continued upward growth for Shanghai's economy, the market is expected to develop faster. The entry of competitors also affects both markets.

How do you plan to roll-out Citadines Apart'hotel in China?
Citadines is the Group's third brand after Ascott and Somerset. The unique characteristic about this brand is its flexibility in allowing guests to choose the services they require. With these options, guests can live their life, their way, according to their lifestyle and budget.

Our first Citadines Apart'hotel, Citadines Shanghai Jinqiao (located at West Beijing Road) opened in Shanghai last August. This year, more Citadines Apart'hotels will be opening up in various Chinese cities. Come March, we will be opening Citadines Suzhou Xinghai, which is also our first property in Suzhou. Following this, we will be opening more Citadines in Suzhou and will enter Xi'an and Hong Kong. Citadines Apart'hotels will be one of the expansion drivers of the Group in China.

How do you plan to position your Ascott, Somerset, and Citadines in relation to each other?
Ascott, Somerset and Citadines are meant to serve different segments of travelers with different needs. However, all three brands will deliver the high level of product and service that Ascott properties are well known for.

Ascott The Residence is a premier serviced residence for top executives and industry leaders, providing efficient business support services in an exclusive and luxurious environment. Somerset Serviced Residence is a serviced residence for executives and their families looking for work-life balance, providing recreational facilities, lifestyle activities and business support services. Citadines Apart'hotel is an urban serviced residence with flexible services for business and leisure travelers who want to experience the city their way, allowing guests to choose the services they want from a menu to suit their lifestyle and budget.

How do you choose physical locations for where you choose to place your properties in China? What makes these areas special?
One of the most important criteria for our initial consideration is the city and its economic status. It must be vibrant with a strong economy (high GDP growth and high GDP per capita); have active foreign investments (growing FDI and expatriate population), and show strong signs of domestic business travelling.

Once we have established the potential of a city, our next criteria is the area within the city. These are typically city centers or the Central Business Districts (CBD). An economic development zone will be considered if it houses a large number or growing number of multinational companies, and depicts a strong showing in business demand. In cities with strong business opportunities like Shanghai and Beijing, we also ventured into sub-city centers due to the large overall demand.

Our third criteria is the availability of potential projects within the target area. This includes reputable developers, good titles, stable technical building structures amid other factors which contributes to the suitability for a serviced residence operation

How do you train your staff and what sort of incentive programs does The Ascott Group offer to them?
Ascott International believes strongly in human capital and offers a lot of training opportunities to our staff. Training programs are geared towards three main development objectives in mind – to develop the desired company culture, competencies for effective results, and talents for the future. This is carried out through leadership and management programs, as well as technical skills-set development.

They include training programs and stints within China, as well as overseas. Examples include the Leadership Development Programs, Management Development Programs, and The Ascott Group Exchange Program. From 2005 to 2006, there was a 21% increase in the number of people trained in our China properties. Moving forward, this number can only increase as we need talents for positions to meet the company's rapid expansion plans in China.

What are some challenges to operating your business in China?
One of the main challenges lies in managing the high staff turnover rate in China's service industries, especially within the hospitality field. This is prevalent due to the boundless opportunities available with the influx of branded and multinational companies. To combat this challenge in staff retention, we have personal development and training programs in place

Another challenge we face is delivering a consistent and high level of product and service in every property. We are again trying to overcome this by implementing regular training programs for the junior ranks in order to upkeep the quality and standards that Ascott is well-known for.

What is the most important lesson you have learned throughout your business career?
Stay focused and execute well!