As part of its strategic partnership, Ascott expects to invest up to AUD500 million in new properties that Quest will secure for its franchise in Australia over the next five years. Ascott will have a right of first refusal to buy the properties sourced by Quest. Quest would then provide a lease for the properties, which will be operated under franchises using the Quest brand.

Ascott has also signed an agreement to acquire a 20% stake in Quest for AUD28.8 million with the option to increase its stake in Quest to 30%.

Mr Lee Chee Koon, CEO Ascott, said: “The Australian accommodation sector continues to expand with more than 100 properties expected to be opened over the next few years. Our partnership with Quest is another strategic move that will further propel Ascott’s growth. Besides Australia, we will seek investment opportunities in key markets where we have presence such as Singapore, India, capital cities in Southeast Asia, Paris, London and key cities in Germany. We will also continue to expand through management contracts, strategic alliances and franchises to achieve our target of 80,000 apartment units globally by 2020.”

Mr Paul Constantinou, Chairman of Quest Serviced Apartments, remarks that: “Quest brings franchising experience and expertise to this partnership, whilst Ascott offers a global presence, and longevity in the industry. This partnership offers both parties the opportunity to broaden a highly successful franchising model to other parts of the world.”

In Australia, Ascott currently operates five serviced residences with more than 670 apartment units. Quest has around 150 properties with over 8,000 existing units in Australia, New Zealand and Fiji, and a further 1,500 units under construction.