The put up Ascott acquires Oakwood worldwide to fast-track growth to over 150,000 units globally appeared first on TD (Travel Daily Media) Travel Daily.
The Ascott Limited (Ascott) has introduced it’s buying Oakwood Worldwide (Oakwood). The acquisition will increase Ascott’s international portfolio by 81 properties and about 15,000 units. Oakwood’s roughly 8,500 operational units are anticipated to instantly contribute to Ascott’s recurring charge revenue streams upon completion of the transaction slated in 3Q 2022.
Ascott’s acquisition of Oakwood will leapfrog Ascott’s international presence to greater than 150,000 units in about 900 properties throughout over 200 cities in 39 nations. It will add new markets which embody Cheongju in South Korea; Zhangjiakou and Qingdao in China; Dhaka in Bangladesh in addition to Washington D.C. within the United States of America (USA).
Recently named the ‘Best Serviced Residence Brand’ in DestinAsian Readers’ Choice Awards 2022, Oakwood’s award-winning portfolio consists of flagship properties Oakwood Premier Tokyo and Oakwood Premier Coex Center Seoul which had been ranked prime 10 properties of their respective nations within the DestinAsian awards. New properties similar to Oakwood Premier Melbourne and Oakwood Hotel Oike Kyoto, may also add to the group’s vacation spot highlights.
Mr Kevin Goh, CLI’s Chief Executive Officer for Lodging, mentioned: “This acquisition of Oakwood is part of Ascott’s roadmap to playing a bigger role in the lodging market. There are significant synergies between Ascott and Oakwood, given our complementary footprint and product offerings. We intend to build on the strong reputation and heritage of the Oakwood brand, especially in markets across Southeast 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. We will be able to leverage Ascott’s extensive expertise as a global lodging player to deliver greater value to our expanded network of loyal customers and property owners.”
“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. The strategic moves we have made in the last few years, such as our investments in Quest, Synergy and TAUZIA have charted an unprecedented growth path for Ascott,” added Mr Goh.
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