The Assembly Place Targets 10,000 Keys by 2030: Expanding Beyond Co-Living

The Assembly Place (TAP), a co-living operator listed on the Catalist board of the Singapore Exchange, is set to diversify its accommodation offerings significantly. As of June 30, 2023, TAP manages 3,520 keys across 103 properties, with plans to increase this number to 10,000 by 2030. The company aims to achieve this through a multi-sector accommodation model that caters to various demographics, including students, young professionals, seniors, and foreign workers.

Currently, 102 of TAP's properties are located in Singapore, with the remaining one situated in Kuala Lumpur, Malaysia. CEO Eugene Lim emphasized that expanding into six living sectors—residential co-living, hotels, serviced apartments, student accommodation, inter-generational living, and migrant worker dormitories—will enable TAP to reach a broader range of residents and foster long-term relationships.

“You shift from asset to asset, but you are still plugged into the same community.”Eugene Lim, CEO

With 95% of its members being foreigners, and 85% of them under the age of 34, TAP recognizes the growing importance of community connections among younger residents. This is particularly evident in its student accommodation portfolio, which houses nearly 700 international students from 20 countries. Students typically pay around S$800 (approximately US$600) per month for a bed, transitioning to entry-level co-living rooms starting at S$1,350 (about US$1,020) after securing employment.

Lim noted that this flexibility allows members to adjust their living arrangements during financial uncertainties, such as the recent downturn in the tech industry, where workers could downgrade from premium rooms to more affordable options without leaving the TAP network.

“We thought the best thing was to curate icebreaker games, but we realised that our seniors start talking to the young people, young people start talking to the seniors, and they makan together.”Eugene Lim, CEO

In addition to its core co-living business, TAP is venturing into healthcare professional accommodations and budget travel markets. Under a 10-year contract with Singapore's Ministry of Health, TAP operates TSTAP, a joint venture managing 1,308 keys for foreign healthcare professionals. Furthermore, TAP is entering the migrant worker accommodation segment with Habitat, a 60% owned joint venture dormitory featuring communal areas designed to enhance community living.

Recently, TAP launched its eighth brand, Gather House, a premium capsule hostel aimed at younger travelers, priced at around S$45 (approximately US$34) per night. The first phase of this hostel has achieved over 90% occupancy following its soft launch. TAP is also expanding its footprint in Malaysia with Social on Bangsar, a 66-bed hotel offering nightly rates ranging from RM150 (US$37) to RM250.

“In mergers and acquisitions, we have to manage people and culture. The numbers may look good, but acquiring legacy issues is another thing.”Eugene Lim, CEO

Looking ahead, TAP plans to introduce Algo by The Assembly Place, an 80-key property in Geylang that will combine accommodation with technology-focused communal spaces, including an artificial intelligence lab and podcast rooms. Lim expects this development to attract tech professionals and residents interested in AI, with room rates starting at around S$1,600 (approximately US$1,200) per month.

As TAP continues to grow, it remains focused on organic expansion rather than aggressive acquisitions, with Lim saying that in mergers and acquisitions, managing people and culture is important, and while the numbers may look good, acquiring legacy issues is another matter. The company reported a 33.9% year-on-year increase in revenue for the first half of 2023, reaching S$15.6 million (around US$11.7 million), with net profit growing by 80.7% to S$2.2 million (approximately US$1.6 million).