CapitaLand Investment Limited’s (CLI) wholly owned lodging business unit, The Ascott Limited (Ascott), has acquired Oakwood Worldwide (Oakwood), a global serviced apartment provider, from Mapletree Investments
The acquisition increases Ascott’s global portfolio by 81 properties and about 15,000 units. Oakwood’s approximately 8,500 operational units will immediately contribute to Ascott’s recurring fee income streams upon completion of the transaction slated in 3Q2022.
Ascott’s acquisition of Oakwood will leapfrog Ascott’s global presence to more than 150,000 units in about 900 properties across over 200 cities in 39 countries. It will add new markets which include Cheongju in South Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh as well as Washington DC, US.
Kevin Goh, CLI’s CEO for lodging, said: “We intend to build on the strong reputation and heritage of the Oakwood brand, especially in markets across South-east 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.”
“Besides strategic alignment… 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,” added Goh.