Mapletree Acquires Oakwood Worldwide

LOS ANGELES—Mapletree Investments has acquired Oakwood Worldwide and all of its global operations. The purchase will significantly expand Mapletree's corporate housing and serviced apartment business. As part of the acquisition, Mapletree has appointed Chris Ahearn to CEO, while the Howard Ruby, the chairman and founder or Oakwood, will assume the non-executive role of chairman emeritus at Oakwood. To find out more about the merger of the companies and how the companies will be affected, we sat down with Ahearn for an exclusive interview.

GlobeSt.com: Why was this a good time and strategic move for Oakwood to merge with Mapletree?

Chris Ahearn: Over the past couple of years, Oakwood has implemented many initiatives to ensure that it continues to meet the changing needs of clients, maintains its leadership position, and strategically positions itself for profitable growth and operational efficiency. Howard Ruby and the senior leadership across Oakwood's global operations are committed to maintaining this momentum. This led Oakwood, in 2016, to embark on a process to evaluate strategic options available to ensure Oakwood's long-term success. Mapletree and Oakwood have been in a collaborative relationship since 2014, when a partnership was signed for Oakwood to manage the corporate housing and serviced apartment properties owned by Mapletree across the globe. The 2014 collaboration also saw Mapletree take up a 49% stake in Oakwood's Asia Pacific operating am, Oakwood Asia Pacific (OAP).

As learned through the partnership, Mapletree's interests and objectives align well with Oakwood's business model and strategic growth plans. We share the same vision of accelerating the worldwide expansion of the Oakwood corporate housing & serviced apartment business. Through the relationship, Mapletree has demonstrated a disciplined investment approach and great respect for the strength and legacy of the Oakwood brand and organization. The acquisition will create synergies that will fuel the growth of the Oakwood brand worldwide. Mapletree is financially strong and has vast expertise investing in, developing and managing real estate globally, while Oakwood Worldwide is well known for its capabilities at managing an expansive array of corporate housing and serviced apartment solutions.

GlobeSt.com: How will the company and its assets be affected by the merger?

Ahearn: Oakwood Worldwide is now a wholly owned subsidiary of Mapletree.  Our current plan is to continue to use our three brands, Oakwood, ExecuStay and Insurance Housing Solutions, to meet the diverse needs of our clients around the world.  Although, we will review this as we put together a strategic plan to grow Oakwood going forward. Internally, we will also be studying all of our processes to strengthen the alignment and integration of our operations across all geographies. We value the experience and capabilities of the existing Oakwood team of associates and the acquisition allows Oakwood and Mapletree to leverage each other's strengths and experience.  As such, we will minimize any employment changes to ensure that operations run smoothly, as we optimize manpower and resources to strengthen the company.

GlobeSt.com: What are the going forward plans and strategy of the combined company?

Ahearn: Oakwood Worldwide will continue to grow its business of operating, marketing and managing the portfolio of Oakwood-branded buildings that are owned by a diverse group of third-party property owners, as well as the serviced apartment assets of our parent company, Mapletree. In addition, we will also continue to grow Oakwood's corporate housing business. The goal is to continue aligning, growing and evolving Oakwood's global capabilities and innovative offerings to strengthen our position as the global leader in the corporate housing and serviced apartment industry. In doing so, we will better meet the ever-changing needs of our clients and guests, enabling them to successfully achieve their business objectives.

LOS ANGELES—Mapletree Investments has acquired Oakwood Worldwide and all of its global operations. The purchase will significantly expand Mapletree's corporate housing and serviced apartment business. As part of the acquisition, Mapletree has appointed Chris Ahearn to CEO, while the Howard Ruby, the chairman and founder or Oakwood, will assume the non-executive role of chairman emeritus at Oakwood. To find out more about the merger of the companies and how the companies will be affected, we sat down with Ahearn for an exclusive interview.

GlobeSt.com: Why was this a good time and strategic move for Oakwood to merge with Mapletree?

Chris Ahearn: Over the past couple of years, Oakwood has implemented many initiatives to ensure that it continues to meet the changing needs of clients, maintains its leadership position, and strategically positions itself for profitable growth and operational efficiency. Howard Ruby and the senior leadership across Oakwood's global operations are committed to maintaining this momentum. This led Oakwood, in 2016, to embark on a process to evaluate strategic options available to ensure Oakwood's long-term success. Mapletree and Oakwood have been in a collaborative relationship since 2014, when a partnership was signed for Oakwood to manage the corporate housing and serviced apartment properties owned by Mapletree across the globe. The 2014 collaboration also saw Mapletree take up a 49% stake in Oakwood's Asia Pacific operating am, Oakwood Asia Pacific (OAP).

As learned through the partnership, Mapletree's interests and objectives align well with Oakwood's business model and strategic growth plans. We share the same vision of accelerating the worldwide expansion of the Oakwood corporate housing & serviced apartment business. Through the relationship, Mapletree has demonstrated a disciplined investment approach and great respect for the strength and legacy of the Oakwood brand and organization. The acquisition will create synergies that will fuel the growth of the Oakwood brand worldwide. Mapletree is financially strong and has vast expertise investing in, developing and managing real estate globally, while Oakwood Worldwide is well known for its capabilities at managing an expansive array of corporate housing and serviced apartment solutions.

GlobeSt.com: How will the company and its assets be affected by the merger?

Ahearn: Oakwood Worldwide is now a wholly owned subsidiary of Mapletree.  Our current plan is to continue to use our three brands, Oakwood, ExecuStay and Insurance Housing Solutions, to meet the diverse needs of our clients around the world.  Although, we will review this as we put together a strategic plan to grow Oakwood going forward. Internally, we will also be studying all of our processes to strengthen the alignment and integration of our operations across all geographies. We value the experience and capabilities of the existing Oakwood team of associates and the acquisition allows Oakwood and Mapletree to leverage each other's strengths and experience.  As such, we will minimize any employment changes to ensure that operations run smoothly, as we optimize manpower and resources to strengthen the company.

GlobeSt.com: What are the going forward plans and strategy of the combined company?

Ahearn: Oakwood Worldwide will continue to grow its business of operating, marketing and managing the portfolio of Oakwood-branded buildings that are owned by a diverse group of third-party property owners, as well as the serviced apartment assets of our parent company, Mapletree. In addition, we will also continue to grow Oakwood's corporate housing business. The goal is to continue aligning, growing and evolving Oakwood's global capabilities and innovative offerings to strengthen our position as the global leader in the corporate housing and serviced apartment industry. In doing so, we will better meet the ever-changing needs of our clients and guests, enabling them to successfully achieve their business objectives.