Australia: The Ascott Ltd has secured full ownership of Quest Apartment Hotels after acquiring founder Paul Constantinou’s remaining 20 per cent stake for an undisclosed sum.
“After 33 years, this week I officially say goodbye to Quest Apartment Hotels, a business that I founded in 1988. Ascott Limited has finalised the purchase of the remaining equity I had in the business. I wish them nothing but success in the future,” Constantinou wrote on LinkedIn. “To all the many wonderful and truly inspiring people I have met along the way, I thank you. It has always been very humbling to see so many wonderful team members and franchisees reach their personal best. This is certainly not a time that I ride into the sunset and retire, I now look forward to the many opportunities that still exist, even through these uncertain times.”
Ascott paid AUS$28.8 million for its initial 20 per cent stake in Quest in 2014 as part of a $500 million investment partnership that included developing more than 20 new hotels, leased back to Quest, and acquiring, through its listed Ascott Residence Trust, three Quest properties in Sydney for $83 million. The deal at the time valued Quest at $144 million.
Three years later, Ascott became the majority owner of Quest after acquiring a further 60 per cent of the business for $193 million, valuing the franchise operator at about $300 million.
Quest is now led by David Mansfield, managing director of Ascott Australia and Quest Apartment Hotels. He said: “Right now, our focus is on supporting our operators, particularly in Victoria and NSW, and readying ourselves for a hopeful return to travel later this year. Our vision is firmly placed on being a best in class franchising provider and under Ascott the success of our network franchisees will continue to be the top priority, with a strong focus on operations and systems, guest satisfaction and brand positioning at this time.”
