Ascott has acquired a prime property on New
York’s Fifth Avenue and unveiled plans to invest a total of close
to US$50 million (S$68 million) in the property.
The operating 125-unit Hotel Central Fifth
Avenue New York will undergo renovation in phases to prepare for
its rebranding to Citadines Fifth Avenue New York in 2018.
The property will mark the debut of Ascott’s first
Citadines serviced residence in the U.S.
The acquisition in New
York follows Ascott’s recent foray into South America through
franchise agreements for two Citadines serviced residences in São
Ascott’s real estate investment trust, Ascott
Residence Trust, also acquired the 369-unit Sheraton Tribeca New
York Hotel and the 411-key Element New York Times Square West
hotel in 2016 and 2015 respectively.
Citadines Fifth Avenue New
York will increase Ascott’s portfolio in the Americas to more than
1,100 units across five properties.
Mr Lee Chee Koon, Ascott’s
Chief Executive Officer, said, “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. We have since
brought the brand to Asia Pacific, Middle East, South America and
now the U.S. As a prominent showcase of the brand, Citadines Fifth
Avenue New York will fast-track Ascott’s plans to expand our
franchise business in North America. Franchise together with
investments, management contracts and strategic alliances will
continue to be key strategies to bolster Ascott’s leading position
as we strive towards our target of 80,000 units globally by 2020.”
“New York has registered significant increase in average daily
rate and occupancy in the past years, particularly in Manhattan where we currently own two other prime properties through our 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. For many of Ascott’s customers who are
accustomed to the quality service offerings of our award-winning
brands, our first Citadines-branded property in the heart of the
bustling New York City will further strengthen our global network
and provide them with yet another prime accommodation option,”
Mr Lee added. “The U.S. will continue to be an economic powerhouse
and its potential for long term returns is attractive. It is our third largest source market for guests and we expect this to grow.
Bringing our Citadines brand to the U.S. will enhance our engagement with American customers, and reinforce the cross
selling of our other properties in Asia Pacific, Europe and the
Middle East. Besides strengthening our foothold in New York, we
also see opportunities for Ascott to expand in other U.S. cities
such as Boston, Los Angeles, San Francisco and Washington DC.”
The property is centrally located at 15 West 45th Street along the
prestigious Fifth Avenue shopping street and near Times Square, one of the world’s most visited locations with more than 40
million visitors each year. It is also close to the Grand Central
Station, easily accessible by subway and bus, and is well served
In 2016, New York City broke record with its highest
ever visitor arrival – more than 60 million visitors – marking the
seventh year of consecutive growth. Hotel room nights sold also
increased by 1.2 million to 34.9 million nights last year.
Citadines Fifth Avenue New York will have access to a big
catchment of business travellers as it is within walking distance
to over 100 million square feet of office space where companies
such as IBM, Microsoft, Morgan Stanley, Bank of America and
Verizon are located.
Leisure visitors can enjoy the Museum of
Modern Art, catch a show at the Broadway Theater District, shop at
Fifth Avenue, ice-skate at the Rink at the Rockefeller Center or
take a leisurely stroll in Central Park or Bryant Park, all within
the vicinity of the property.
With this latest acquisition in
New York, Ascott has added 10 properties with 1,900 units to date
this year, across China, Brazil, South Korea and the U.S. Ascott
has also opened four properties with more than 800 units. These
include its first serviced residences in Jeju, South Korea and in
Makassar, Indonesia; as well as properties in Riyadh, Saudi Arabia
and Tokyo, Japan.
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