Business

Ascott buys first Silicon Valley hotel for $81.5 million

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 US in five months. It has more than tripled last year's portfolio to more than 2,900 units there.

The 136-unit hotel will continue to operate as it undergoes refurbishment in phases before being rebranded as Citadines Cupertino Sunnyvale 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.

Ascott chief executive Lee Chee Koon said: "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."

The Domain Hotel is on Sunnyvale's primary thoroughfare, El Camino Real, that leads to San Francisco and San Jose cities. Companies in the location include Apple's new campus, Google, Amazon, Netflix, and Tesla. - THE STRAITS TIMES

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