Singapore REIT buys London’s Cavendish and bets on hotels
Singapore-listed CapitaLand Ascott Trust is growing its international portfolio and betting on the resurgence of tourism across the world with the acquisition of three hotels in the UK, Ireland and Indonesia, for a total of S$358 million (€361 million).
The three assets are The Cavendish Hotel in London, the Temple Bar Hotel in Dublin and the Ascott Kuningan, a serviced residence in Jakarta. The largest hotel is the 230-room Cavendish in Mayfair, which has been acquired for £116.3 million.
The group plans to renovate and upgrade the hotel next year to improve its valuation to £316 million, and will rebrand it under The Crest Collection, a luxury brand managed by Ascott.
The 136-key Temple Bar hotel in Dublin, which will also undergo renovation, was acquired for €70 million and marks the Singapore REIT’s entry into Ireland. The 185-unit Ascott Kuningan is in a prime location in Jakarta’s central business district.
“These three prime lodging assets are well positioned to capture travel demand and the expected growth trajectory of these assets will continue to strengthen our income streams”, said Serena Teo, CEO, CapitaLand Ascott Trust.
“London has been one of our strongest performing markets, Jakarta has been a historically resilient market and our entry into Ireland offers an additional boost to our revenue”, she added, pointing out that Dublin is an attractive tourist destination as well as being one of Europe’s IT hubs and home to some of the world’s largest pharmaceutical companies.
“The Cavendish London and Temple Bar Hotel provide us with upside as travel demand continues to recover and downside protection through minimum guaranteed income, while Ascott Kuningan’s Jakarta’s higher proportion of long-stay guests provides added income resilience”, Teo said.
The group has an international portfolio of 107 properties with more than 19,000 units in 47 cities in 15 countries in Asia-Pacific, Europe and the US.
