Singapore: Ascott, the largest operator of serviced apartments globally, will add around 15,000 units to its global inventory with the acquisition of Oakwood Worldwide from Mapletree Investments Pte Ltd.
The acquisition increases Ascott’s global portfolio by 81 properties and around 15,000 units. Oakwood’s approximately 8,500 operational units are expected to immediately contribute to Ascott’s recurring fee income streams upon completion of the transaction in Q3 2022.
Ascott’s acquisition of Oakwood will grow its global presence to more than 150,000 units in around 900 properties across over 200 cities in 39 countries.
Kevin Goh, CEO for Lodging at Ascott’s parent company CapitaLand Investment Limited, 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.”
“Besides strategic alignment, this acquisition is also notable to Ascott commercially. 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. The strategic moves we have made in the last few years, such as our investments in Quest, Synergy and TAUZIA have charted an unprecedented growth path for Ascott,” he added.
