CapitaLand Ltd.'s The Ascott Ltd. is buying its first property in Silicon Valley, Calif., for S$81.5 million, which includes costs related to buying and refurbishing the freehold hotel.
The 136-unit The Domain Hotel at 1085 East El Camino Real, Sunnyvale, will be rebranded and unveiled as Citadines Cupertino Sunnyvale in the fourth quarter of 2018. It will stay open while being refurbished in phases.
Ascott noted that the hotel will be its second Citadines property in the U.S., with the first one to be renovated and rebranded to Citadines Fifth Avenue New York in 2018. The Domain Hotel is also the CapitaLand subsidiary's fourth deal in the U.S. within five months, boosting its portfolio in the country to over 2,900 units.
Ascott CEO Lee Chee Koon said the company's five properties in the U.S. and its acquisition of a majority stake in Synergy Global Housing LLC in July will allow the company to target Fortune 500 companies and major Silicon Valley technology firms.
As of Oct. 18, US$1 was equivalent to S$1.36.