CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), is acquiring an 80% stake in Synergy Global Housing (Synergy), a leading accommodation provider in the U.S. The acquisition will expand Ascott’s footprint in the U.S. and strengthen its extensive range of international-class serviced residences for corporate customers worldwide. It will also triple Ascott’s portfolio from over 1,000 units to about 3,000 units in the U.S.
This acquisition is yet another move to transform Ascott’s global operating platform following hot on the heels of its investment in Quest Apartment Hotels earlier this month, which will leapfrog Ascott to become the largest serviced residence provider in Australasia.
Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said, “Ascott has been a partner of Synergy to cross sell our units since 2013. We see value in taking a majority stake in Synergy to further increase the scale of our business in the U.S. and to strengthen Ascott's lead globally. We are confident of surpassing our target of 80,000 units well ahead of 2020, as we look at more opportunities to grow through investments, management contracts, franchises and strategic alliances.”
Mr Lee added, “In addition to providing Ascott’s corporate customers with more accommodation options in the U.S., we will also be able to immediately fulfill demand from Synergy’s corporate customers when they require accommodation outside of the country. The U.S. is a key market for Ascott and we see potential for us to expand further in cities such as New York, Boston, Los Angeles, San Francisco and Washington DC.”
In addition to Global Solution Centres in Dublin, Ireland; Hyderabad, India and Singapore; Synergy has a strong foothold in the U.S., where it leases apartments from partners and property owners to rent to corporate clients. In particular, this investment will give Ascott an immediate presence and access to corporations based in Silicon Valley, which include high-tech powerhouses boasting achievements and influence that extend well beyond the San Francisco Bay Area.