Ascott Residence Trust acquires prime property in Midtown Manhattan near Times Square for $106 million
Ascott Residence Trust (Ascott Reit) is adding another prime property to its global portfolio by acquiring the 224-unit DoubleTree by Hilton Hotel New York – Times Square South for US$106 million (S$148.4 million1 ).
The freehold property is located in Midtown Manhattan near Times Square, one of the most visited locations in the world, with more than 40 million visitors each year.
Mr Bob Tan, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “The U.S. market was our top contributor to revenue in 2016 and 1Q 2017. Acquisition of yet another quality property in Manhattan would strengthen our foothold in New York, which saw record high visitor arrivals in 2016. New York has strong corporate demand for accommodation as business travellers form a quarter of all visitors annually, generating over 30% of visitor spending. Manhattan has the strongest performing hotel market in the U.S. with the highest revenue per room. This DoubleTree by Hilton Hotel New York – Times Square South, as well as Sheraton Tribeca New York Hotel and Element New York Times Square West hotel, which we acquired in the last two years, enjoy high average occupancy rate of more than 90%. We expect this accretive acquisition to enhance Ascott Reit’s portfolio as we remain focused on creating stable and growing returns to Unitholders.”
DoubleTree by Hilton Hotel New York – Times Square South is located on 36th Street, within walking distance to many of Manhattan’s attractions such as Times Square, Madison Square Garden, the Jacob Javits Convention Center and the Empire State Building. The property offers a range of stylish rooms and facilities including a 24-hour fitness centre, business centre, meeting rooms, a restaurant and bar. It is also close to Penn Station, the busiest train station in North America which sees over 200 million passengers a year travelling to and from other gateway cities in the U.S.
Source: Ascott REIT