US: Ascott is investing S$81.5 million to acquire and refurbish The Domain Hotel, a freehold hotel in Silicon Valley, California.
The company has bought the property “to capture the fast-growing demand from global technology companies and multinational corporations”.
The 136-unit hotel will continue to operate as it undergoes refurbishment in phases before being rebranded to Citadines Cupertino Sunnyvale in Q4 2018. This will be Ascott’s second Citadines-branded property in the US, following its acquisition of Hotel Central Fifth Avenue New York in May. The latter will be renovated and rebranded to Citadines Fifth Avenue New York in 2018. The property is Ascott’s fourth acquisition in the US within five months, taking its portfolio to more than 2,900 units in the country.
Ascott CEO Lee Chee Koon said: “We are acquiring Ascott’s first property in Silicon Valley which will allow us to invest in one of the most desirable property markets in the US. Silicon Valley has a high growth economy and is home to some of the world’s biggest and leading technology companies and multinational corporations, generating significant demand for accommodation. Our recent majority-stake acquisition of Synergy Global Housing in the U.S. will also enable Ascott to capitalise on its strong customer base of Fortune 500 companies and major Silicon Valley technology firms. Together with Ascott’s five properties in the US, we are in a good position to capture this ready pool of corporate clients and offer them more accommodation options in this highly sought-after location.”
“Citadines is our fastest-growing brand with close to 20,000 units in Asia Pacific, Europe and the Middle East. By stepping up our Citadines presence in the U.S., we will increase its reach to American travellers, our third largest source market, and cross sell to our properties outside the U.S. As we get closer to surpassing our target of 80,000 units globally by 2020, we will continue to seek opportunities in the U.S. in cities such as New York, Boston, Los Angeles, San Francisco and Washington DC,” he added.
The Domain Hotel is situated along Sunnyvale’s primary thoroughfare, El Camino Real, that leads to San Francisco City and San Jose. The property is surrounded by numerous corporations and startups including Apple’s new US$5 billion headquarter campus, which will accommodate more than 12,000 employees, Google, Amazon, Adobe, Intel, Netflix, Nvidia, PayPal and Telsa Motors.
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