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BLOG No. 5 - AHS GROUP’S MOVE INTO THE SENIOR LIVING SECTOR – EXPLAINED

June 08, 2021 - Jonathan Wigley, CEO & Founder of AHS

With our recent announcement/launch of the Eastin Estates brand, which is an extended stay hospitality foundation brand targeting the active senior sector, we have repeatedly been asked why and why now have we decided to become active in this segment.


Let’s focus first on the why: 

For the past 12-14 months we were internally looking at new revenue growth streams in the hospitality space. We were already active in the management/branding of hotels, resorts, serviced residences, golf courses, country clubs and leisure facilities as well as offering hospitality consulting, auditing and training services, so what could be next? We concluded to launch Absolute Design Services (ADS), an interior design/concept company for the hospitality sector, about 9 months ago as we already had the skill set in our team, things have gone well. 


We also thought about the senior living sector on a hospitality-driven extended stay platform and decided to do more research and study. By understanding the sector and how it is segmented in the mature markets like the US, UK, Canada and Australia. Also understanding what supply is currently available in Asia as well as the demographic trends in Asia’s populations and traditional source markets populations to each destination in Asia. Basically, we found the very limited and unconsolidated supply for active seniors extended stays and a huge, untapped, active, mobile and affluent demand base from both domestic and international markets. That’s the why.


Why now?

There is the first-mover advantage we wished to benefit from for sure. The data was too good not to move, limited or no supply and a huge untapped demand, even I could figure that out.  Secondly, due to the impacts of the Pandemic, there is a huge amount of distressed inventory in the hospitality and real estate sectors which would be perfect for conversion opportunities on a low-risk basis. When operated well this model will produce great operating returns as it is super profitable.  Thirdly, we have seen in Asia a huge reduction, within the middle classes, of multi-generational housing thus families choose to live separately to have their freedom and can afford to do so. The long-haul market has been that way for many generations.  Fourthly, the majority of Asia countries have some of the world’s best hospitals/health care facilities.


Last but not least, property investors/developers are looking to diversify their investment portfolios to spread risk and maximize benefit, this sector allows them to do so with fundamental demand & supply data as justification.

We are super excited to expand in this sector with Eastin Estates and I will be reserving a residence for myself very soon. Watch this space, fortune favours the brave.

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