CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott), has acquired an operating serviced residence in Hong Kong for HK$545 million (approximately S$88.8 million). The 55-unit property will be rebranded as Citadines Mercer Hong Kong in the third quarter of 2014.
Strategically located in Sheung Wan on Hong Kong Island, Citadines Mercer Hong Kong is next to the Central Business District and is close to the trendy Soho area with many restaurants, art galleries and fashion boutiques. The property is also near the famous Lan Kwai Fong, enabling guests to enjoy some of Hong Kong’s finest shopping, dining and entertainment options. The serviced residence is only a minute walk to Sheung Wan Mass Transit Railway, a five-minute walk to Hong Kong-Macau Ferry Terminal and a 10-minute walk to the International Finance Centre where many multinational companies and financial institutions are based.
Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “One of Ascott’s growth strategies is to look for prime operating serviced residences in gateway cities which will provide us with faster time to market. We will leverage Ascott’s strong design edge and hospitality capabilities to enhance the newly acquired property to Ascott’s international standards, as we have successfully done so for many properties worldwide. Adding a fourth property to our portfolio in Hong Kong will give us economies of scale and further strengthen Ascott’s leadership position as the largest international serviced residence owner-operator in China with more than 10,300 apartment units in 57 properties across 20 cities.”
Mr Lee added: “As we celebrate Ascott’s 30th anniversary this year, we welcome guests to experience our properties by taking advantage of our anniversary promotions. Moving forward, besides expanding our global footprint through management contracts and strategic alliances, we are actively seeking investment opportunities in key markets such as Singapore, China, India, capital cities in Southeast Asia, Paris, London and key cities in Germany.”
Mr Kevin Goh, Ascott’s Managing Director for North Asia, said: “There is strong demand for serviced residences from expatriates and travellers in Hong Kong as it remains a key metropolitan city in Asia for foreign direct investment, especially for companies seeking to expand in the fast growing Pearl River Delta region. Our first serviced residence in Hong Kong, Citadines Ashley Hong Kong, has been enjoying high occupancy of above 90% since it opened in Tsim Sha Tsui in 2006. With our expertise in managing award-winning serviced residences worldwide, we are confident that Citadines Mercer Hong Kong will perform well. We plan to open Somerset Victoria Park Hong Kong in the third quarter of this year and will also rebrand another prime serviced residence on Connaught Road in 2015 which we acquired in August last year.”
Citadines Mercer Hong Kong will offer independent business and leisure travellers the flexibility to customise their stay experience by choosing the services they require to suit their lifestyle needs. Each of the one-bedroom apartments is tastefully designed with contemporary furnishings, a kitchenette, living area and workspace, providing guests with unparalleled comfort and privacy. Residents will also be able to enjoy a wide range of recreational facilities including a residents’ lounge, gymnasium and swimming pool.
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