VOCO

About Us

AC 711 Hotel Partners, TSQ Development and 711 Atlas Development are pleased to announce the development of a new 422 guest room upscale hotel in Times Square, New York. In addition to the 422 guest rooms, the hotel will generate significant revenue through its three Food & Beverage venues comprising 7,500 sf and including an indoor/outdoor rooftop bar overlooking Times Square, accessed by a dedicated high speed elevator. There will be no other bar in the area with a direct view of Times Square itself. We are in preliminary discussions with several prominent restaurateurs as potential tenants for the Food & Beverage venues.
Located at 711 7th Avenue and West 48th Street in Manhattan, the “bullseye” for most hotel brands, this site is likely the last to be developed in Times Square, due to a 2021 zoning change. The Sponsor secured a 99-year ground lease early in 2021, including the unusual option to buy the ground in 20 years.
Plans were filed in April 2021 and the foundation permit approved, thereby vesting our right to build the hotel ahead of the 2021 New York City zoning change which makes approval of future hotels nearly impossible.
This hotel is the sponsor’s 2nd VOCO in Manhattan. The VOCO brand is new to the USA, but well established in Europe and the Middle East. Due to the stresses of COVID, tens of thousands of hotel rooms closed that will never re-enter the marketplace. The City of New York has taken over 75 hotels for migrant housing; there will be no release of these hotels back into the market for the foreseeable future. The 2021 zoning changes make the future development of hotels extremely difficult to nearly impossible. The number of rooms in the market will most probably never recover to pre-COVID levels, making the outlook for both the remaining and few new hotels even brighter as the market compresses.
As of March 2024, the building structure has been completed through the 4th of 33 floors. The hotel is on schedule to open in Q4 2025.
The hotel will feature 5 Illuminated and 3 static advertising signs totaling more than 7,500 sf. on different faces of the building. These signs are anticipated to generate between $1M and $3M in annual net revenue for the hotel.
The Sponsor has contributed $29M in equity for the project. The Job Creating Entity closed on a loan in June 2023 from Beachpoint Capital Management of up to $120M in additional funding as a development loan.
EB5 funds will be used to fund a portion of construction, reduce the $120M development loan to $110M, fund a portion of interest on the development loan, and related legal costs. The funds will be invested as preferred equity into the Job Creating Entity.
The operating projections were developed in consultation with the Hotel Management Company. The franchisor (IHG) provided revenue guidance.
The VOCO Hotel Times Square affords a unique opportunity for prudent EB5 investors to participate in the premier hotel market in the USA, with a seasoned development team that has demonstrated success on many similar projects in the same marketplace.