The Ascott is acquiring an additional 60 per cent stake in Quest Apartment Hotels for A$180 million.
This will increase Ascott’s stake in Quest from its current 20 per cent to 80 per cent, propelling Ascott to become the largest serviced residence provider in Australasia.
With 180 properties located in regional and metropolitan areas across Australia, New Zealand and Fiji, the acquisition will boost Ascott’s portfolio by over 11,000 units to more than 67,000 units across 507 properties and 124 cities globally.
Lee Chee Koon, Ascott chief executive, said: “Increasing our stake in Quest to become its majority shareholder will leapfrog Ascott to become the leading serviced residence provider in Australasia.
“This acquisition will give Ascott an instant boost of over 11,000 units.
“Scale is important for us to offer more options to customers, strengthen our sales and distribution, and help speed up Ascott’s growth.
“Besides entrenching Ascott’s presence in the developed and stable market of Australia, we will be able to capitalise on the established Quest brand and its highly scalable business format franchise systems and know-how, and further apply the franchise platform as a driver of growth for Ascott.”
At the same time, Ascott has the option to acquire the remaining 20 per cent interest in Quest, subject to terms and conditions.
Paul Constantinou, chairman, Quest Apartment Hotels, said the investment sees Quest joining one of the world’s leading serviced residence networks, offering Quest guests the benefit of true global reach across 29 countries in the Americas, Asia Pacific, Europe and the Middle East.
“Quest will now further leverage the strength of Ascott’s globally recognised, award-winning brands and fast track its international expansion, whilst maintaining its successful franchise format business, along with the value and integrity of the Quest brand,” Constantinou concluded.