Singapore-based Ascott has agreed to acquire corporate housing provider Oakwood Worldwide and its global portfolio of 15,000 short-term apartment rental units.
Ascott, the wholly owned lodging unit of real estate investment manager CapitaLand, said it’s acquiring Singapore’s Oakwood from Mapletree Investments for an undisclosed price.
The purchase increases Ascott’s global short-term rental housing portfolio by 81 managed branded properties of about 15,000 units. Its holdings in the United States include two operating properties, one under development, and multiple franchised managed properties concentrated in major markets.
CapitaLand did not immediately respond to requests for additional information.
The deal will add recurring fee income streams to Ascott’s expanding holdings. About 60% of Oakwood’s business come from guests with average stays of 30 days or more.
It will also help Ascott grow its global presence to more than 150,000 units in about 900 properties across more than 200 cities in 39 countries.
“This acquisition of Oakwood is part of Ascott’s roadmap to playing a bigger role in the lodging market,” CapitaLand’s CEO for lodging, Kevin Goh, said in a statement. "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.”
Oakwood has been growing rapidly in Asia but lately has shifted its focus to North America, Oakwood CEO Dean Schreiber told CoStar Group’s Hotel News Now in December.
“We have not only witnessed continued interest from owners seeking to either convert existing hotels into serviced apartments or partnering with us on new development construction, but we have also seen a strong trend of serviced apartments developing as a preferred form of accommodation over traditional hotels,” Schreiber said.
Oakwood shifted its focus toward hospitality management in May 2020, he said. Its brands in North America include Oakwood Premier, Oakwood Hotel & Apartments, Oakwood Suites, Oakwood Residence, Oakwood Studios, The Unlimited Collection by Oakwood, and Oakwood Living.
Its Oakwood Living brand offering both hotel rooms and longer-term multifamily rentals debuted in the United States in November with units in Raleigh, North Carolina; Dallas, Texas; and Los Angeles and Redwood City in California.