Ascott, has agreed to acquire 100% shareholding in SNC Costes K which owns the prime Hotel K and and adjacent vacant residential property in Paris based on an agreed asset value of €65 million (approximately S$118.4 million).

After the acquisition is completed, Ascott will combine and transform the freehold properties into a premium serviced residence to be named Ascott Arc de Triomphe Paris. When it begins operations in June 2011, it will be the first serviced residence to open in France under the exclusive Ascott brand.

The new 106-unit serviced residence increases Ascott's Europe portfolio to over 5,400 apartment units in 49 properties across 22 cities.

Mr Lim Ming Yan, Ascott's Chief Executive Officer, said: "Within the first four months of 2011, Ascott has invested S$203 million in Europe through our acquisitions of Ascott Arc de Triomphe Paris and two properties in Frankfurt and Hamburg. This demonstrates Ascott's long-term commitment in Europe, and we will continue to identify opportunities to deepen our
presence especially in key markets like Paris, London and major cities in Germany. These investments form part of our ongoing capital recycling strategy, with Ascott re-deploying a portion of almost S$1 billion in proceeds generated by the divestment of 28 assets to Ascott Residence Trust last year. These new assets will further enhance our real estate investment portfolio in Europe and form a quality pipeline for the Ascott Residence Trust."

Mr Lim added: "In 2011, we have already secured about 1,800 units through new investments and management contracts. This extends Ascott's leadership position as the world's largest international serviced residence owner-operator with over 27,000 apartment units and we are on track to achieve our global target of 40,000 apartment units by 2015."

Mr Tan Choon Kwang, Ascott's Managing Director for Europe, said: "The two properties in Paris present a good opportunity to invest in a resilient and growing hospitality real estate market. Paris is a key business city with many large companies, government offices and embassies. It is also one of the world's most beautiful and popular tourist destinations. As there is a lack of upscale serviced residences in Paris, we expect strong demand for our flagship Ascott Arc de Triomphe Paris. Business and leisure travellers can look forward to a unique stay experience in the luxurious serviced residence."

Besides having a prime location in the heart of Paris, the landmark property combines the contemporary design of renowned architect Ricardo Bofill and the distinctive architecture of 19th century Paris. Situated along Avenue Kléber, Ascott Arc de Triomphe Paris is steps away from the world famous Champs-Elysées Avenue and the Trocadéro Esplanade. 

The property is located in the 16th arrondissement, a prestigious and upmarket district with numerous offices and embassies. It is within walking distance to many leisure and tourist attractions including the Arc de Triomphe, Eiffel Tower, Théâtre National de Chaillot and prestigious museums such as Musée du Quai Branly (dedicated to Indigenous Art, cultures
and Civilisations) and Musée Guimet (National Museum of Asian Arts). With several metro stations and bus stops in the property's vicinity, travellers will enjoy convenient access to various destinations in Paris.

To cater to the different lifestyle needs of business and leisure travellers, Ascott Arc de Triomphe Paris will offer a range of spacious apartments from studios to two-bedroom units. Residents will enjoy amenities including a swimming pool, fitness centre, sauna, spa and restaurant.

With the addition of Ascott Arc de Triomphe Paris, Ascott has over 3,600 apartment units in 35 properties across 14 cities in France. Besides Paris, these properties are located in cities including Cannes, Lille, Lyon, Marseille, Nice, Strasbourg and Toulouse.