The Ascott Ltd., the Singapore-based lodging unit owned by CapitaLand Investment (CLI), along with CapitaLand Wellness Fund (C-WELL), has acquired a lodging property in Singapore. The property will be relaunched under Ascott’s lyf brand.
While other transaction details have not been disclosed officially, a news report said Gaw Capital Partners sold Hotel G for S$180 million ($180.21 million) to Ascott. Gaw Capital acquired the hotel in 2015, then operating as the Big Hotel, for S$203 million ($152 million). The group began marketing the hotel more than a year ago at an initial asking price of S$320 million ($240.28 million), the report revealed.
The 308-unit property will be revitalized and rebranded as lyf Bugis Singapore later this year, Ascott said in a statement. Located in the downtown core district, the property is within walking distance of both Bugis and Bencoolen MRT train stations. The property will remain operational during its renovation and rebranding period.
With this addition, lyf now has four hotels in Singapore.
With a focus on health and wellness, lyf Bugis Singapore will offer a range of amenities, such as fitness facilities, shared spaces and dining options to encourage social interaction.
Guests can also avail a suite of telecounselling, telehealth and travel security advisory services. The hotel will soon partner with healthcare and wellness operators to ensure medical services to guests.
lyf Bugis Singapore will be a green-certified hotel with sustainability features, such as an enhanced cooling system and a room occupancy detection system. The hotel is anticipated to obtain the Green Mark GoldPLUS certification from Singapore’s Building & Construction Authority.
The acquisition is aligned with Ascott’s asset-light expansion strategy, said Kevin Goh, CEO, Ascott and CLI Lodging.
“As a vertically integrated global lodging business with a strong foothold in Asia, Ascott is able to leverage our full suite of real estate investment and management capabilities to grow our portfolio and expand our fee income streams. Tapping on our strong deal-sourcing abilities, we have added a strategically located freehold asset to our portfolio in our home ground of Singapore. With the rebranding of the property under the lyf brand coupled with Ascott’s award-winning operational expertise, lyf Bugis Singapore is well-positioned to capture travel demand while uplifting the value of the asset,” Goh said.
The acquisition marks C-WELL’s first since its first close in October 2023. C-WELL is CLI’s first wellness and healthcare-related real estate fund focused on Singapore, Thailand and Malaysia.
With a target fund size of S$1 billion ($750 million) on an upsized option, C-WELL plans to invest in single or mixed-used assets in the healthcare, medical, wellness and preventive care sectors.
C-WELL is actively exploring opportunities that contribute to its scale, synergy and sustainable growth in Southeast Asia, CLI said.
“The Bugis-Bras Basah precinct, with its diverse mix of retail, workspaces, residential and medical facilities, has the potential to be transformed into a thriving hub for wellness and corporate healthcare, attracting both local and international visitors. Together with the other CLI-managed properties in the precinct, we now have the unique opportunity to develop an integrated wellness-hospitality ecosystem that meets the growing demand for wellness and healthcare-related tourism,” said Patricia Goh, CEO, Southeast Asia Investment, CLI.
LYF EXPANDS GLOBAL PRESENCE
Ascott has signed eight new lyf hotels totaling around 1,500 units, helping the brand venture into new city and resort destinations like Bali, Sydney, Penang and Frankfurt. The brand plans to open in more key destinations, including the U.K., and grow its presence in Europe.
lyf is currently present in 21 cities, with more than 5,500 units operating and in the pipeline. Made for the “next-generation traveler,” the brand aims to offer an experience-led social living concept to digital nomads, technopreneurs and creatives.
“The lyf brand has captured the attention of the market with its dynamic designs, flexible spaces and well-curated programming with the community at its core. Owners and investors alike have seen the resilience and continued demand for experience-led social living that lyf has been synonymous with, an accommodation trend that has been made more pronounced post-pandemic and we believe is here to stay,” said Serena Lim, chief growth officer, Ascott.
“lyf is thus well-positioned to cater to this growing interest, availing a brand that is not just conversion-friendly for owners but also meets the increasing needs of travelers who are seeking the best of all worlds where they are able to mix privacy with social living, combining a space to work, stay and play.”
Ascott opened a record number of lyf hotels in 2023, almost doubling that of 2022. Some of the recent openings include lyf Schönbrunn Vienna in Austria (marking the brand’s European debut); lyf Dayanta Xi’an in China; lyf Ginza Tokyo in Japan (which achieved higher-than-expected ADR and outpaced the expected occupancy); lyf Chinatown Kuala Lumpur in Malaysia and lyf Malate Manila in the Philippines.