The Ascott is acquiring an 80 per cent stake in Synergy Global Housing, a leading accommodation provider in the US.
The acquisition will expand Ascott’s footprint in the United States 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 US.
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.
Lee Chee Koon, Ascott chief executive, said: “With the acquisition of Synergy as well as our earlier investment in Quest, Ascott is gearing up to transform our business to become an even more active and dominant player in the hospitality eco-system.
“As we move up the value chain to acquire strong operating platforms globally, we are getting closer to our customers, understanding their needs better and thereby improving our service and product offerings to them.
“The synergies to be realised with these majority-stake acquisitions will propel Ascott’s growth at an unprecedented pace.”
Lee added: “The US is Ascott’s third largest source market for guests.
“This acquisition will give us direct access to Synergy’s corporate customers in the US that include world-renowned technology brands in the Bay Area and beyond.
“In addition to providing Ascott’s corporate customers with more accommodation options in the US, we will also be able to immediately fulfil demand from Synergy’s corporate customers when they require accommodation outside of the country.
In addition to Global Solution Centres in Dublin, Ireland; Hyderabad, India and Singapore; Synergy has a strong foothold in the US, 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.
Henry Luebbert, co-founder of Synergy Global Housing, said: “This joint partnership strengthens both Ascott’s and Synergy’s ability to service its customers by combining two of the world’s leading brands in the serviced accommodation sector.
“Having spent more than 30 years managing award-winning properties, Ascott has been one of the foremost serviced residence providers around the world.
“Synergy’s expediential 18-year growth within the furnished housing space has been fuelled by our future-forward innovation and immense passion for the customer.