ARA Asset Management has bought a portfolio of 38 select-service hotels across 21 American states for an undisclosed sum.
ARA said the deal to buy the assets, under the Hyatt Place and Hyatt House brands, marks its entry into the United States.
Chief executive John Lim said yesterday: "We will look at injecting this quality portfolio into our growing Reits (real estate investment trusts) and private fund platforms in the near future as part of our multi-platform, multi-product global fund management strategy."
ARA, which was bought out and delisted last year, is one of the largest Reit managers in Asia.
The group directly manages Fortune Reit, which is dual listed in Singapore and Hong Kong; Suntec Reit and Cache Logistics Trust, both listed here; and the Hong Kong-listed Hui Xian and Prosperity Reits. It also indirectly manages Reits in Japan and Australia through associate companies. The acquisition extends the group's global footprint to 99 cities in 21 countries.
Number of cities across 21 countries where ARA Asset Management has a footprint, after its latest acquisition.
ARA said it will open an office in Dallas, Texas, that will serve as its US base, providing key functions such as investment and asset management, business development and related services.
It will be led by industry veteran Jin Y. Lee, who has more than 25 years of experience in the hospitality sector.
Mr Lim said: "We are confident of the US hospitality sector, particularly in select-service hotels, where entry yields remain attractive."
ARA said the US select-service sector - which offers economical hotel rooms to business travellers - has outperformed the full-service sector over the past two decades due to its simpler operating model and steady demand.
It added that the sector is supported by a robust US economy that is anticipated to grow close to 3 per cent this year, and a positive long-term business outlook.