Blackstone, Gaw Capital make initial bids for Ascendas Hospitality: sources

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U.S.-based Westmont Hospitality Group and U.S. investment firm Varde Partners have also placed a joint bid to acquire Ascendas, which has a market value of about $610 million, said the sources, who declined to be identified as the talks remained confidential.

Blackstone, Ascendas Hospitality and Varde declined to comment. Westmont Hospitality was not reachable for comment.

Asked about its bid, Gaw Capital said in an email: "Yes, we are looking at the deal."

Ascendas Hospitality Trust has a portfolio of 11 hotels with more than 4,100 rooms in Australia, China, Japan and Singapore, according to its website.

DBS Vickers said last month said Ascendas' hotels in Australia, especially in Sydney and Melbourne, would boost its growth outlook due to an increase in tourist arrivals and fewer new accommodation options.

Ascendas is a 'stapled' asset comprising Ascendas Hospitality Real Estate Investment Trust and Ascendas Hospitality Business Trust. Stapled assets are created when two or more securities are contractually bound together so they cannot be bought or sold separately.

Reuters reported last month that Blackstone and Gaw were weighing separate offers for the trust.

Ascendas Hospitality generated 17.5 percent in total returns in 2015, compared with an average negative total return of 1.9 percent by the 35 trusts in the city-state's REIT sector, Singapore Exchange data shows.

The trust's units have gained 2.7 percent so far in 2016, compared with a 8.7 percent fall in the broader index .STI.

(Reporting by Saeed Azhar and Aradhana Aravindan; Editing by Miral Fahmy)