Located on 39th Street between 8th and 9th Avenue, the prestigious Element New York Times Square West is ideally positioned for both business and leisure travellers, with companies such as Barclays Capital and Ernst & Young situated alongside Broadway theatres and Central Park.
The property offers luxury rooms, studios and one-bedroom suites with fully-equipped kitchens. There is also a rooftop terrace, bar, business centre, fitness centre and a variety of meeting rooms.
Mr Lim Jit Poh, Chairman, Ascott Residence Trust Management Limited’s (ARTML), said: “Our first acquisition in America is a strategic step that will enable us to capitalise on the burgeoning US hospitality market. The US economy has been growing steadily in the past few years and recovery in the US hospitality market has also gained momentum. Revenue per available room (RevPAR), particularly in gateway cities like New York where there is high demand for accommodation, has improved significantly.
“This US acquisition, combined with our other recent acquisitions in Australia and Japan, will broaden Ascott Reit’s earning base and increase our scale to 11,779 units. Ascott Reit’s asset size will also increase by S$519 million to S$4.6 billion.”
After the acquisition, the property will continue to be operated under the ‘Element’ brand through a franchise by Starwood Hotels & Resorts Worldwide, Inc.
Mr Ronald Tay, CEO, ARTML, said: “The current operator, which has been running the property since its opening, is well established in New York. It currently operates 19 hotels with over 3,800 rooms in the US. Ascott Reit remains open to acquiring further properties that are operated by reputable third parties, providing such acquisitions meet our investment criteria and there is avenue for growth.”
Ascott Reit was founded in 2006 in Asia Pacific, expanding into Europe in 2010 and is now looking to extend its footprint into the in-demand US market. Its entry into the US will further diversify Ascott Reit’s portfolio and increase The Ascott Limited’s profile and reputation as a global hospitality player.