The Ascott Limited takes 20% stake in Quest Serviced Apartments.
Singapore-based The Ascott Limited has just announced a major new partnership with Quest Serviced Apartments, including taking a 20% stake in the business for $28.8 million.
Ascott says it expects to invest up to $500 million to acquire new Quest Apartments properties in Australia over the next five years, while the agreement also gives Ascott the option to increase its Quest stake to 30%.
In a separate deal Ascott’s real estate investment trust, Ascott Residence Trust, will acquire three properties in Greater Sydney for $83m – Quest Sydney Olympic Park, Quest Campbelltown and Quest Mascot. All three will continue to be operated under franchises using the Quest brand.
Ascott ceo Lee Chee Koon said “Ascott has an established presence in Australia where our serviced residences enjoy a strong demand from travellers to the country, and we see vast potential growth opportunities for serviced residences.
“Serviced apartments represent over 25% share of the accommodation market in Australia where Quest is a leading player,” he said.
The deal has just announced in Melbourne during Quest’s annual conference, where Quest chairman Paul Constantinou said there is now the potential to “accelerate our growth to secure 250 properties across Australia and New Zealand before the end of this decade”.
More information in today’s issue of Travel Daily.