Oakwood Worldwide is planning to add 100 more serviced residences after it secured a major new investment from the Mapletree Group.
Singapore-based Mapletree has signed a deal to acquire 49% of Oakwood Asia Pacific, and is now planning to expand the accommodation brand into new markets across the world.
“This was a unique opportunity for us to align with an investor who has the size and capability to allow for rapid expansion of our brand,” said Bill Foltz, Oakwood Worldwide’s chief financial officer and the architect of the joint venture. “Mapletree is a first-class organisation and that’s why we knew they would be a great partner to expand our global offerings as they look to grow outside of the Asia Pacific region.”
Oakwood currently operates properties throughout the US, UK and Asia Pacific, including China, Hong Kong, India, Indonesia, Japan, South Korea, the Philippines and Thailand. But following Maplewood’s investment, the company has set a target of opening more than 100 new properties around the world over the next five years.
Mapletree will acquire and develop new Oakwood serviced residences in markets outside North America, while Los Angeles-based Oakwood Worldwide will source and manage acquisitions for Mapletree within North America.
“This joint venture is an important step for us in our next five-year strategic growth plan,” said Mapletree’s group CEO, Hiew Yoon Khong. “The joint venture will help Mapletree build our operational capability in the corporate and serviced apartments sector. This sector is another key asset class which we are confident of building into a world class platform with Oakwood as a partner.”
Howard Ruby, Oakwood Worldwide’s founder, chairman & CEO, said the joint venture marked “the beginning of a new chapter in our company’s 50-year evolution”.