Ascott Reit buys New York hotel for US$163.5m

Singapore

ALREADY present in the Asia-Pacific and Europe, Ascott Residence Trust (Ascott Reit) has made its foray into the United States by acquiring a hotel in New York's Times Square for US$163.5 million.

The accretive acquisition of the 411-room Element New York Times Square West hotel in Midtown Manhattan, at an Ebitda (earnings before interest, taxes, depreciation and amortisation) yield of 6.2 per cent, is expected to increase Ascott Reit's distribution income in FY2014 by US$0.8 million.