CapitaLand's wholly owned serviced residence arm, The Ascott , is investing $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 freehold property is Ascott's fourth acquisition in the United States in five months. It has more than tripled last year's portfolio to over 2,900 units in the country.
The 136-unit hotel will continue to operate as it undergoes refurbishment in phases before being rebranded as Citadines Cupertino Sunnyvale in the fourth quarter of next year.
This will be Ascott's second Citadines-branded property in the US, following its acquisition of Hotel Central Fifth Avenue New York in May. The latter will be renovated and rebranded as Citadines Fifth Avenue New York next year.
Said Ascott CEO Lee Chee Koon: "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.
"Our recent majority-stake acquisition of Synergy Global Housing in the US will also enable Ascott to capitalise on its strong customer base of Fortune 500 companies and major Silicon Valley technology firms."
Mr Lee said the Citadines is Ascott's fastest-growing brand with close to 20,000 units in the 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.
ASCOTT CEO LEE CHEE KOON, on the rebranding of its latest acquisition as Citadines Cupertino Sunnyvale.
"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."
He added that the company will continue to seek opportunities in the US in cities such as New York, Boston, Los Angeles, San Francisco and Washington DC.
The Domain Hotel is situated in Sunnyvale's primary thoroughfare, El Camino Real, that leads to San Francisco City and San Jose. Companies and start-ups in that location include Apple's new US$5 billion (S$6.8 billion) campus, Google, Amazon, Adobe, Intel, Netflix, Nvidia, PayPal and Tesla Motors.