The deal with Ascott negates the need for Quest to seek a public listing,say its directors.
These will continue to be operated and leased back long-term under the Quest brand and franchise platform. In addition,Ascott will become a minority joint venture partner within Quest.
Both companies operate similar franchise models and the deal will allow Quest to launch its brand overseas,to Europe,the United States and parts of Asia.
The Ascott group operates under three international brands – Ascott,Citadines and Somerset,with more than 200 properties globally,including five in Australia.
Quest chief executive Zed Sanjana said the deal had been worked on since late last year,when Quest began its internal five-year strategy plan.
"The alliance with Ascott will enable investment in new Quest properties across Australia be fast-tracked over the next five years,allowing us to expand the network to over 250 properties by the end of the decade,"Mr Sanjana said.