Singapore’s Largest Hospitality REIT Targets U.S. Market To Constitute Up To 20% Of Asset Size by 2017
Ascott Residence Trust (Ascott REIT) marked its 10th year anniversary with the acquisition of its second property in New York.
The Singapore-based REIT has acquired the 369-room Sheraton Tribeca New York Hotel at 370 Canal St. in the heart of Tribeca, one of the priciest residential neighborhoods in Manhattan.
The REIT paid $158 million or roughly $428,185/room.
This is Ascott REIT’s second acquisition in New York in less than a year.
Last summer Ascott made its maiden acquisition in New York, the 411-room Element New York Times Square West for $63.5 million ($397,810/room).
With its second acquisition in New York, the U.S. will make up 10% of Ascott’s asset size.
Ronald Tay, Ascott’s CEO, said the REIT is looking to increase our presence in the U.S. to constitute up to 20% of its asset size by 2017.
“Our long-term strategy in the United States of America is to acquire a scalable portfolio of stable, operating assets, with an initial target of key gateway cities along the Eastern Seaboard,” Tay said.
Tay added that Sheraton Tribeca New York Hotel has been achieving strong occupancy of more than 90% in the past year and average daily rate has been growing steadily since its opening in October 2010.
Following the acquisition, the hotel will continue to be managed by FC-Canal Management LLC, an affiliate of Magna Hospitality Group, which was the seller.
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