SINGAPORE (Dec 3): ARA Asset Management announced Monday that it has completed the acquisition of a portfolio 38 hotels in the US.

The “select service” hotels, which offer a lower price point compared with full service hotels, are branded as Hyatt Place and Hyatt House across 21 states in the US.

While ARA did not disclose the cost of the acquisition, the group says this is part of its global expansion plans over the past year.

“Over the past year, ARA has made headways in expanding globally as we established our presence beyond Asia Pacific to Europe,” says John Lim, Group CEO of ARA. “Expanding into the US hospitality sector adds on to ARA’s diversified suite of products and services in the public and private markets.”

“We will look at injecting this quality portfolio into our growing REITs and private fund platforms in the near future as part of our multi-platform, multi-product global fund management strategy. We are confident of the US hospitality sector, particularly in select service hotels, where entry yields remain attractive,” he adds.

Select service hotels are believed to be particularly compelling in markets where there is a large and growing middle class along with a meaningful number of local business travellers.

“Acquisition of the Hyatt Portfolio is a strategic initiative for ARA, and it presents us with great potential for business and AUM growth both in the hospitality sector and the US market,” says Moses Song, ARA’s assistant Group CEO and Group Chief Investment Officer.

ARA says it will open an office in Dallas, Texas that will serve as its base of operations in the US. The acquisition extends the group’s global footprint to 99 cities in 21 countries.