Oakwood Worldwide Strikes $4 Billion Expansion DealWednesday, April 30, 2014
Oakwood Worldwide has announced a $4 billion joint venture deal that is expected to more than triple its global reach over the next five years.
The West L.A. extended-stay and corporate-housing company said today it had struck a deal with Singapore-based Mapletree to acquire and develop more than 100 corporate apartment buildings worldwide.
The deal gives Mapletree, a real estate development, investment and capital management firm, a 49 percent stake in Oakwood Asia Pacific (OAP), an Oakwood subsidiary that manages about 28 buildings in throughout Asia.
“When we get this capital invested, I would expect to grow more than a billion in revenue,” said Bill Foltz, Oakwood’s chief financial officer. “Our goal is to make Oakwood a significant brand in the corporate and service department business. This is going to solidify that and increase our foothold.”
It also highlights Asia’s growing interest in investing in the U.S. market he said.
Mapletree will operate under a license to use the Oakwood brand in markets managed by OAP. And Oakwood Worldwide will handle acquisition and development deals for Mapletree within North America.
Oakwood was founded in 1960 and manages more than 25,000 units worldwide. It has roughly 1,500 employees in the United States, not including franchises.