Terms of the deal were not disclosed. The acquisition is set to be completed in the third quarter of 2022, after which 8,500 Oakwood operational units are expected to immediately contribute to Ascott’s recurring fee income streams.
Ascott parent company CapitaLand Investment expects the acquisition to take the serviced apartment operator’s global presence to more than 150,000 units in about 900 properties across more than 200 cities in 39 countries.
With Oakwood coming onboard, Ascott is confident of achieving its target of 160,000 units globally ahead of 2023.
Following the acquisition, the new markets that would be added to the Ascott portfolio include Cheongju in South Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh as well as Washington D.C.
Mapletree acquired Oakwood in February 2017.
Other Ascott takeovers include Quest Apartment Hotels in 2017. In the same year, Ascott invested in Synergy Global Housing, a corporate housing provider in the U.S. In 2018, Ascott acquired Indonesian hotel operator Tauzia Hotel Management to enter the mid-scale business hotel segment.