Singaporean firm Ascott Residence Trust has just bought the 244-key DoubleTree by Hilton Hotel New York – Times Square South for $106 million.
The acquisition is the company’s third in Manhattan over the past two years. The company also owns the Sheraton Tribeca New York Hotel and the Element New York Times Square Hotel. The deal increases the firm’s portfolio in the borough to 1,004 units.
“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.” said Bob Tan, Ascott’s Chairman.
The deal makes the US Ascott’s fourth largest market, behind China, Japan and Singapore. The country now accounts for 12.3 percent of Ascott’s $5.3 billion in total assets.
According to Ascott CEO Beh Siew Kim, the hotel will continue to operate under the Doubletree by Hilton brand. Ascott plans to fund the acquisition with loans or perpetual securities.