The Cavendish Hotel sold for £159m

Ascott will manage the 230-room hotel from the fourth quarter of 2012 and will  transform the property into a luxurious serviced residence under the premier Ascott The Residence brand.

Aquisition of The Cavendish London increases Ascott's central London portfolio to seven properties. In Europe Acscott currently manages over 5,000 units across 45 properties in 20 cities.

The Cavendish London is located on Jermyn Street in the St James's area of Mayfair and features five meeting rooms.  

Mr Chong Kee Hiong, Ascott's chief executive officer, said: "London is one of the strongest and most resilient hospitality markets where demand from business and leisure travellers for international-class serviced residences continues to grow. This is an attractive opportunity to acquire a quality operating property which is strategically located in the prestigious Mayfair area. We see the potential to transform this property into one of the best luxury serviced residences in London. The acquisition of The Cavendish London is in line with our articulated strategy to seek investment opportunities in key growth cities in Asia and Europe."  

Mr Tan Choon Kwang, Ascott's managing director for Europe, added: "Ascott The Residence is our flagship brand that provides guests with discreet and unmatched personalised services in an exclusive environment. It is the perfect brand for this prime hotel. Many dignitaries and top business executives stay at our internationally-recognised Ascott brand of serviced residences located in key cities around the world. We look forward to welcoming guests to experience Ascott's signature hospitality and our wide array of business support services at the new Ascott St James London."