Ascott, a wholly-owned serviced residence business unit of CapitaLand, has signed an agreement to acquire a hotel in London for S$311m (£158.8m).
The 230-room The Cavendish London, which will be managed by Ascott in the fourth quarter of 2012, will later be transformed into a serviced residence under the Ascott The Residence brand and will be named as Ascott St James London.
According to the Singapore-based Ascott, the transformation represents the Ascott brand’s expansion in the key hospitality market of London.
The acquisition of The Cavendish London will add to Ascott’s presence in Europe by increasing its portfolio to seven properties in central London.
Ascott chief executive officer Chong Kee Hiong said the demand from business and leisure travellers for international-class serviced residences in London is growing.
"We see the potential to transform this property into one of the best luxury serviced residences in London. The acquisition of The Cavendish London is in line with our articulated strategy to seek investment opportunities in key growth cities in Asia and Europe," Hiong added.
The Cavendish London features five meeting rooms for business travellers, offering carbon-neutral meeting package options and a business centre, besides 24hr concierge, porter and room services.
Amenities also include wireless internet connection, Petrichor Restaurant, a lounge and a lobby bar.
Ascott, which manages over 5,000 units across 45 properties in 20 cities, currently operates Ascott Mayfair, Citadines Prestige Trafalgar Square, Citadines Prestige Holborn-Covent Garden, Citadines Prestige South Kensington, Citadines Barbican and St Marks serviced residence in London.
Image: Ascott will manage the 230-room The Cavendish London in the fourth quarter of 2012. Photo: Fabriciomtorres