Diamond Rock Hospitality is to acquire a hotel property, which is under development in Times Square, Manhattan, New York, US, for $112.5m-$135m.

The property will have approximately 300 guestrooms and is expected to be completed in 2013.

The number of guestrooms could be increased to 400, which could push up the purchase price to $178m, the company said.

The hotel is being developed by an affiliate of Walton Street Capital and Highgate Holdings, and will be operated by Highgate Hotels on completion.

Diamond Rock Hospitality is a real estate investment trust that owns 23 hotels with over 10,700 rooms in the US.