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CapitaLand’s wholly-owned serviced residence arm, The Ascott, plans to spend $81.5 million to purchase and renovate a freehold hotel in Silicon Valley, California, revealed an SGX filing today (19 October).
“We are acquiring Ascott’s first property in Silicon Valley which will allow us to invest in one of the most desirable property markets in the US,” said its CEO Lee Chee Koon.
Known as The Domain Hotel, the 136-unit property is strategically located near world-renowned tech firms, like Google, Apple, Amazon, PayPal, Netflix, Intel, Adobe, Nvidia and Telsa Motors.
Aside from being close to the convention centres in Santa Clara and San Jose McEnery, it is also within proximity to attractions such as Happy Hollow Park & Zoo, The Computer History Museum and The Tech Museum of Innovation. Stanford University, Santa Clara University and San Jose State University are close by as well.
Moreover, the property will continue to operate while it is being revamped, but it will be rebranded to Citadines Cupertino Sunnyvale by the last quarter of 2018.
It is anticipated to become Ascott’s second Citadines property in the country. Last May, the company acquired Hotel Central Fifth Avenue New York, which will be refurbished and rebranded to Citadines Fifth Avenue New York next year.
“Citadines is our fastest-growing brand with close to 20,000 units in Asia Pacific, Europe and the Middle East. By stepping up our Citadines presence in the US, we will increase its reach to American travellers, our third largest source market, and cross sell to our properties outside the US,” noted Lee.
In addition, Domain Hotel represents Ascott’s fourth acquisition in the US within five months. As a result, the company has now more than tripled its portfolio in the country from last year to around 2,900 units.
“As we get closer to surpassing our target of 80,000 units globally by 2020, we will continue to seek opportunities in the US — in cities such as New York, Boston, Los Angeles, San Francisco and Washington DC,” he added.
This article was edited by Keshia Faculin.
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