Ascott increases Oakwood’s portfolio by 20% following the acquisition in 2H2022
The Ascott is the lodging arm for CapitaLand Investment. It announced that the Oakwood Portfolio has grown by over 20% ever since the group acquired Oakwood Worldwide 2H2022.
Ascott has acquired Oakwood Worldwide. Although the group did disclose the purchase amount, it’s estimated that the amount would have been between $40 million and $50 million.
When the announcement was made in 2022 on July 4th, approximately 8,500 of 15,000 keys would be operational. The fee related earnings (FRE), per 10,000 operational and stabilized keys, is about $20 million. Ascott, the Oakwood property owner, has introduced a new brand refresh to all Oakwood properties.
Grand Dunman
Ascott today expanded Oakwood’s presence in 48 cities. This includes Busan in South Korea and Ha Long in Vietnam.
Oakwood has been one of Ascott’s fastest-growing global brands with almost 18,000 units sold to date. Over 20 new signatories have joined the Oakwood family since the acquisition.
Ascott’s media release stated that the successful integration into the Oakwood ecosystem of its brand helped grow revenue as well as improve operational efficiencies through cost synergies.
Oakwood Hotel & Apartments Taman Mini Jakarta & Oakwood Makati Avenue, two recent wins previously managed under other operators.
Ascott has been able to increase revenues and improve margins by leveraging pricing power and meeting market demand. This has contributed to the overall improved financial performance of Oakwood’s portfolio following its acquisition.
Grand Dunman Balance Unit Chart
Ascott sees the Oakwood Portfolio contribute immediately to its recurring fees, in line With the group’s target to double the fee earnings by 2028 to more than 500 million.
Ascott 2023 already has 70 properties in the world, which equals about 13,500 apartments, spread across its brands.
Ascott is committed to pursuing transformative deals that will accelerate our growth and give us access to new markets and diverse customer bases as well as valuable synergies. Inorganic expansion offers benefits beyond incremental growth.
We have tapped Oakwood’s extensive knowledge of corporate travel to create a refreshed brand that is in line with today’s needs.
Grand Dunman Condo at Dakota
The Oakwood brand is refreshed with thoughtful in-property features and productivity tools that will appeal to the growing market for bleisure travellers (business and leisure travellers), or business travellers who use work trips to extend their leisure stays.
Oakwood is known for its Oakroom lobby, which welcomes guests as if they were at home. It also offers many dining options, food-related events, and activities. Oakwood GEM Ambassadors are professional ambassadors who provide warm service.
Oakwood is the latest brand to be refreshed, following the Citadines Somerset and Ascott refreshes that took place over the last couple of years. Ascott has a Brand-360 Strategy, which is an exercise group-wide to strengthen their brand portfolio. This includes sharpened brand stories as well as the introduction of signature programs and experiences unique to each of its brands.
