The acquisition increases Ascott’s global portfolio by 81 properties
The Ascott Limited (Ascott) has announced that it is acquiring Oakwood Worldwide (Oakwood), a premier global serviced apartment provider, from Mapletree Investments Pte Ltd.
Oakwood’s 8,500 operational units are expected to immediately contribute to Ascott’s recurring fee income streams upon completion of the transaction slated for Q3 2022.
Ascott’s acquisition of Oakwood will catapult the company's global portfolio to more than 150,000 units in 900 properties across 200 cities in 39 countries.
The acquisition will add new markets, which include Cheongju in South Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh and Washington DC in the US.
Commenting on the announcement, CLI chief executive officer for Lodging Kevin Goh said: “This acquisition of Oakwood is part of Ascott’s roadmap to playing a bigger role in the lodging market. There are significant synergies between Ascott and Oakwood, given our complementary footprint and product offerings. 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.
"Oakwood will continue to grow alongside Ascott’s current portfolio of global brands as we continue to build growth momentum for our lodging business. We will be able to leverage Ascott’s extensive expertise as a global lodging player to deliver greater value to our expanded network of loyal customers and property owners.”
Ascott’s strategic investments in the past years have included its acquisition of Quest Apartment Hotels (Quest) and investing in Synergy Global Housing (Synergy), a leading corporate housing provider in the US. Ascott acquired Indonesian hotel operator Tauzia Hotel Management to enter the fast-growing mid-scale business hotel segment. With Oakwood coming onboard, Ascott is confident of achieving its target of 160,000 units globally well ahead of 2023.
Vincent Miccolis, Ascott's managing director for Middle East, Africa, Turkey and India, added: “As we look towards strengthening our presence in the region, Oakwood’s sizeable global portfolio will contribute significantly to Ascott’s expansion plans. Through this acquisition, we are excited to offer our guests greater opportunities to travel, live and discover with Ascott as they explore key cities and localities worldwide.”
Founded in Los Angeles in 1962, Oakwood is a leading provider of serviced apartments with an excess of 80 branded properties under its management and a presence in more than 15 countries.