Serviced ApartmentsThe acquisition is set to boost the group's presence to more than 200 cities across 39 countries.

Ascott nabs Oakwood to turbocharge global expansion goal

Of the acquisition, CLI CEO for lodging Kevin Goh, said that "Oakwood will continue to grow alongside Ascott’s current portfolio of global brands."
Of the acquisition, CLI CEO for lodging Kevin Goh, said that "Oakwood will continue to grow alongside Ascott’s current portfolio of global brands." Photo Credit: The Ascott Limited

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 destination highlights.

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.

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