Ascott Acquires 80% Stake in Synergy Global Housing

Ascott is acquiring an 80% stake in Synergy Global Housing, a leading accommodation provider in the U.S.

The acquisition will triple Ascott’s portfolio from over 1,000 units to about 3,000 units in the U.S.

“Ascott has been a partner of Synergy to cross sell our units since 2013. We see value in taking a majority stake in Synergy to further increase the scale of our business in the U.S. and to strengthen Ascott's lead globally,” said Mr Lee Chee Koon, Ascott’s Chief Executive Officer. “With Synergy, it will expand our global cross-selling and distribution network as well as enlarge our talent pool. Ascott will also get an uplift by over 2,000 units located predominantly in the U.S., and increase our global portfolio to close to 70,000 units. We are confident of surpassing our target of 80,000 units well ahead of 2020, as we look at more opportunities to grow through investments, management contracts, franchises and strategic alliances.”

In addition to Global Solution Centres in Dublin, Ireland; Hyderabad, India and Singapore; Synergy has a strong foothold in the U.S., where it leases apartments from partners and property owners to rent to corporate clients. In particular, this investment will give Ascott an immediate presence and access to corporations based in Silicon Valley, which include high-tech powerhouses boasting influence that extends well beyond the San Francisco Bay Area.

“The U.S. is Ascott’s third largest source market for guests. This acquisition will give us direct access to Synergy’s corporate customers in the U.S. that include world-renowned technology brands in the Bay Area and beyond. In addition to providing Ascott’s corporate customers with more accommodation options in the U.S., we will also be able to immediately fulfill demand from Synergy’s corporate customers when they require accommodation outside of the country. The U.S. is a key market for Ascott and we see potential for us to expand further in cities such as New York, Boston, Los Angeles, San Francisco and Washington DC,” Mr Lee added

This transaction with Synergy is the latest of Ascott’s acquisition spree to scale up its global presence. In early July, Ascott announced its acquisition of a majority stake in Quest Apartment Hotels to become the largest serviced residence provider in Australasia. In May, Ascott’s real estate investment trust, Ascott Residence Trust, announced the acquisition of DoubleTree by Hilton Hotel New York – Times Square South, adding to its two properties in Manhattan – Sheraton Tribeca New York Hotel and Element New York Times Square West hotel. In the same month, Ascott acquired Hotel Central Fifth Avenue New York, which will be rebranded to Citadines Fifth Avenue New York in 2018.

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