Realty firm CapitaLand's serviced residence business unit, The Ascott said it invested S$81.5 million to acquire and refurbish a freehold hotel in Silicon Valley, California.
The property is Ascott's fourth acquisition in the U.S. within five months as it tries to capture the fast-growing demand from global technology companies and multinational corporations.
The 136-unit Domain Hotel will continue to operate as it undergoes refurbishment in phases before being rebranded to Citadines Cupertino Sunnyvale in the fourth quarter of 2018, the company said in a regulatory filing.
This will be Ascott's second Citadines-branded property in the U.S., following its acquisition of Hotel Central Fifth Avenue New York in May. Ascott has more than tripled last year's portfolio to over 2,900 units in the country.
"Silicon Valley has a high growth economy and is home to some of the world's biggest and leading technology companies and multinational corporations, generating significant demand for accommodation," Lee Chee Koon, Ascott's Chief Executive Officer said in a statement.
The Domain Hotel is surrounded by numerous renowned corporations and startups including Apple's new US$5 billion headquarter campus, which will accommodate more than 12,000 employees, Google, Amazon, Adobe, Intel, Netflix, Nvidia, PayPal and Telsa Motors.
The Domain Hotel has a range of deluxe rooms as well as suites that provide separate living, dining and work areas.
Shares in CapitaLand rose 1.6 percent to S$3.75 on the Singapore Exchange. The stock has gained 24 percent so far this year.
