Ascott to buy London hotel for $311m

The Cavendish London -- PHOTO: THE ASCOTT LIMITED

PROPERTY giant CapitaLand's wholly-owned serviced residence business unit, The Ascott, has entered into an agreement to purchase a prime London hotel.

Ascott will buy The Cavendish London, in the upscale Mayfair area, for $311 million. From the fourth quarter of this year, Ascott will manage the 230-unit hotel, and transform it into a luxurious serviced residence under the premier Ascott The Residence brand. The hotel will be renamed Ascott St James London.

Mr Tan Choon Kwang, Ascott's managing director for Europe, said Ascott The Residence is the "perfect brand for this prime hotel" as it is the company's flagship brand, which provides guests with discreet and unmatched personalised services.

In a media release, Ascott said that this marks the expansion of the premier Ascott brand in the key hospitality market of London, where it will have seven properties including The Cavendish London.

It currently manages more than 5,000 units across 45 properties in 20 European cities.

Ascott chief executive Chong Kee Hiong added that the acquisition is in line with the firm's stated strategy to seek investment opportunities in key growth cities in Asia and Europe.

He said: "London is one of the strongest and most resilient hospitality markets where demand from business and leisure travellers for international-class serviced residences continues to grow. This is an attractive opportunity to acquire a quality operating property which is strategically located in the prestigious Mayfair area."