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The Ascott Limited, CapitaLand’s serviced residence business unit, has acquired a 125-unit hotel in New York, with plans to invest close to US$50 million (S$68 million) in the property.
The operating Hotel Central Fifth Avenue New York will be renovated in phases and rebranded to Citadines Fifth Avenue New York in 2018.
Marking the brand’s debut in the US, Citadines Fifth Avenue New York will take Ascott’s portfolio in the Americas to over 1,100 units across five properties.
“The debut of our Citadines brand in North America is a significant move to expand Ascott’s global network of properties. Citadines is Ascott’s fastest growing brand having more than tripled its portfolio since our acquisition of the Citadines Apart’hotel chain in Europe in 2004,” said Ascott chief executive officer Lee Chee Koon.
Centrally located at 15 West 45th Street, the property is near the Grand Central Station and Times Square, one of the most visited location in the world with over 40 million visitors each year.
Lee noted that New York witnessed significant increase in occupancy and average daily rate over the past years, particularly in Manhattan, where Ascott own two other prime properties via real estate investment trust, Ascott Residence Trust.
“All three properties in Manhattan are in high demand with close to full occupancy given their strategic locations in Times Square, Tribeca and Fifth Avenue.”
With over 30,000 operating serviced residence units and over 21,000 units under development, Ascott targets to boost its global portfolio to 80,000 units by 2020.
This article was edited by Denise Djong.