ART is acquiring DoubleTree by Hilton for US$106 million ($146.5 million).
Including acquisition fees and other costs, total costs will go up to US$111.9 million and ART’s US exposure by portfolio value will rise to 12.3% from 9.7%.
EBITDA yield of the asset is also estimated at 6% compared to ART's forward trading yield of 6.4%.
In a report last week, lead analyst Derek Chang says JLL has valued the target asset at US$109.2 million.
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ART announced that the new property will be a three- to four-star hotel, with 70-80% of contributions stemming from leisure demand.
Last year, Manhattan welcomed a record of 60.3 million tourists.
At the same time, ongoing scrutiny on industry disruptor Airbnb in New York should also spell some relief for the target hotel.
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Airbnb is facing regulatory crackdowns as short-term apartment rentals were announced in April to be illegal. Since 2015, Airbnb has already removed 4,200 New York listings.
Chang recommends investors enter and exit ART at $1.00 and $1.17 respectively.
The counter is trading at $1.14.
