SINGAPORE: The Ascott is investing S$81.5 million to acquire and refurbish The Domain Hotel in Silicon Valley, California, to capture the fast-growing demand from global technology companies and multinational corporations.
The 136-room freehold hotel will be Ascott’s fourth acquisition in the United States in five months, according to its press release on Thursday (Oct 19).
The hotel will continue to operate as it undergoes refurbishment in phases before being rebranded to Citadines Cupertino Sunnyvale in the fourth quarter of next year, the company said.
Mr Lee Chee Koon, Ascott’s chief executive officer, said: “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. Silicon Valley has a high growth economy and is home to some of the world’s biggest and leading technology companies and multinational corporations, generating significant demand for accommodation.”
The Domain Hotel is situated along Sunnyvale’s primary thoroughfare, El Camino Real, which leads to San Francisco City and San Jose. The property is surrounded by numerous renowned corporations and startups including Apple’s new US$5 billion campus, Google, Amazon, Adobe, Intel, Netflix, Nvidia, PayPal and Telsa Motors.
Ascott, CapitaLand’s wholly owned serviced residence business unit, is ramping up its acquisitions in the US.
In May, its real estate investment trust, Ascott Residence Trust, announced the acquisition of DoubleTree by Hilton Hotel New York – Times Square South, adding to its two other properties in Manhattan. In the same month, Ascott acquired Hotel Central Fifth Avenue New York, which will be rebranded to Citadines Fifth Avenue New York in 2018.
In July, Ascott acquired an 80 per cent stake in Synergy Global Housing, a leading accommodation provider in the US, to transform its operating platform.