THE Ascott Limited has joined hands with Australia’s largest serviced apartment provider, Quest Serviced Apartments, to bolster its presence Down Under, where it presently operates five serviced residences.
Under the terms of an agreement signed by both parties, over the next five years Quest will source for new property acquisition opportunities with Ascott holding the right of first refusal. Following that, Quest will provide a lease for the properties and operate them under franchises holding the Quest brand.
Lee Chee Koon, CEO of Ascott, said: “Ascott has an established presence in Australia where our serviced residences enjoy a strong demand from travellers to the country, and we see vast potential growth opportunities for serviced residences. Serviced apartments represent over 25 per cent share of the accommodation market in Australia where Quest is a leading player.
“Through our strategic partnership with Quest, we can leverage each other’s knowledge and contacts in Australia to rapidly extend our presence in the growing market for international quality serviced apartments. We also expect a stronger pipeline of properties in Australia for Ascott to acquire.”
In a separate agreement, Ascott’s real estate investment trust is acquiring three operational serviced residences in Greater Sydney from Quest, at a price tag of A$83 million (US$72.7 million).
The properties – the 140-key Quest Sydney Olympic Park, 81-unit Quest Campbelltown, and Quest Mascot with 91 units – will continue to run under the Quest brand.
Ascott has also agreed to buy a 20 per cent stake in Quest for A$28.8 million.
“We have formed strategic alliances with leading developers such as Vanke and Yuexiu to combine our expertise to drive Ascott’s growth in China. Our partnership with Quest is another strategic move that will further propel Ascotte’s growth,” explained Lee.
He added that Ascott will also seek investment opportunities in key markets such as Singapore, India, South-east Asian capitals, Paris, London, and key German cities.