CLI to receive immediate fee income from Ascott’s acquisition of Oakwood
Oakwood has 81 properties and 15,000 units under management.
Capitaland Investments (CLI) can expect an immediate financial benefit from the acquisition of Oakwood World by its lodging business, The Ascott Limited (Ascott), according to CGS CIMB.
In a report, the analyst said Oakwood has 8,500 operational units which can stream income to CLI. Overall, the apartment operator has 15,000 units under management and 81 properties.
Apart from the potential to drive CLI’s revenue, the acquisition will also push Ascott nearer to its 160,000 units goal by 2023F. Currently, Ascott’s global portfolio is at more than 150,000 units.
In the longer run, the deal can also “expand Ascott’s network of asset owners and strategic alliances to drive growth as more than 90% of Oakwood’s asset owners are new to Ascott,” said CGC CIMB.
“Oakwood’s properties can [also] be onboarded onto Ascott’s loyalty programme, Ascott Star Rewards, to accelerate customer base expansion, drive direct distribution as well as expand the suite of product offerings available for Ascott members,” added the analyst.