The Ascott Limited has acquired The Cavendish Hotel in London for £158.8m and will rename the property Ascott St James London.

The company will manage the 230-room hotel from the fourth quarter of 2012 and the plan is to transform it into a luxurious serviced residence. The acquisition marks the expansion of the Ascott brand in London and enhances the company’s presence in Europe, where it currently manages more than 5,000 units across 45 properties in 20 cities.

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.”

In London, Ascott operates Ascott Mayfair, Citadines Prestige Trafalgar Square, Citadines Prestige Holborn-Covent Garden, Citadines Prestige South Kensington, Citadines Barbican and the St Marks serviced residence.

Pictured: The Cavendish Hotel