The Ascott Limited, a wholly owned business lodging unit by
CapitaLand Investments Limited (CLI), has acquired global serviced
apartment provider Oakwood Worldwide from Mapletree Investments.
The move increases Ascott’s global portfolio by 81 properties and
about 15,000 units. The group's global presence is poised to encompass
more than 150,000 units in about 900 properties across over 200 cities
in 39 countries, once the acquisition is complete. Oakwood's
approximately 8,500 operational units are expected to immediately
contribute to Ascott’s recurring fee income streams upon completion of
the transaction slated in Q3 2022.
New markets brought by the acquisition will include Cheongju in South
Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh as well as
Washington D.C. in the USA. New properties such as Oakwood Premier
Melbourne and Oakwood Hotel Oike Kyoto, will also add to the group’s
Kevin Goh, CLI’s CEO for lodging, said: “This acquisition of Oakwood
is part of Ascott’s roadmap to playing a bigger role in the lodging
market. We intend to build on the strong reputation and heritage of the
Oakwood brand, especially in markets across Southeast Asia, North Asia
and North America.”
“Ascott’s acquisition of Oakwood brings about an immediate boost to
our units under management and franchise contracts. The Oakwood
portfolio will accelerate the growth of our asset-light business, with
added recurring fee income streams, expanded lodging offerings and
increased customer base,” added Goh.
Ascott’s strategic investments in the past years include its 2017
acquisition of one of Australasia's largest serviced apartment
operators, Quest Apartment Hotels. In the same year, Ascott invested in
Synergy Global Housing, a leading corporate housing provider in the USA.
In 2018, Ascott acquired top Indonesian hotel operator TAUZIA Hotel
Management to enter the fast-growing mid-scale business hotel segment.
Ascott's serviced apartment, coliving and hotel brands include Ascott
The Residence, The Crest Collection, Somerset, Quest, Citadines, lyf,
Préférence, Vertu, Harris, Citadines Connect, Fox, Yello, Fox Lite and
POP!. With the Oakwood addition, the company is on track to achieve its
target of 160,000 units globally ahead of 2023.