News for the Hospitality Executive
NEW YORK, Aug. 1, 2011 -- Brooke Denihan Barrett and Patrick Denihan, owners and co-CEOs of Denihan Hospitality Group, are pleased to announce the closing of the firm's joint-venture with Pebblebrook Hotel Trust (NYSE: PEB) on six luxury and upper-upscale Manhattan hotels. Denihan plans to utilize capital from this transaction to fuel Denihan's expansion strategy in key urban markets throughout the U.S.
The capital investment gives the real estate investment trust a 49% stake in six of Denihan's properties in prime New York City locations. Denihan will continue to manage the hotels.
The six-hotel, 1,640-room subset of the Denihan portfolio, which will be increased to 1,730 guest rooms following the completion of the Affinia Manhattan renovation this fall, includes five properties operating under the Affinia Hotels brand, as well as the luxury independent, 209-room Benjamin located at Lexington Avenue and 50th Street. The Affinia assets – also located in Manhattan and owned and managed by Denihan – include Affinia Shelburne and Affinia Dumont in Murray Hill; Affinia Gardens on the Upper East Side; Affinia 50 in Midtown Manhattan; and Affinia Manhattan, located on Seventh Avenue near Madison Square Garden.
Since acquiring the almost 50-year-old Denihan Hospitality Group from other family members in 2006, Denihan's and Barrett's long-term strategy has been to expand its capital relationships to help fuel growth of its upper-upscale and luxury hotel portfolio.
"We believe there is tremendous opportunity in the U.S. hotel market right now, and our joint-venture with Pebblebrook perfectly positions Denihan for immediate and long-term growth," said Patrick Denihan. "We are in the market to acquire and redevelop hotels in key urban markets at below-replacement cost, and we are seeking out new management contracts as well."
Jon Bortz, chairman and chief executive officer of Pebblebrook, added, "We found a like-minded partner in Denihan Hospitality Group. I have known Brooke and Patrick many years and have experienced first-hand their high-performing hotels and operating system. We are pleased to be partnering with Denihan on this successful venture."
Citigroup acted as the exclusive financial advisor to Denihan in the transaction.
About Denihan Hospitality Group
Denihan Hospitality Group is a privately-held, full-service hotel management and development company that owns and operates 13 boutique hotels in major urban markets in the U.S. Over the past 50 years, the Denihan family has built a world class lodging investment platform within the boutique hotel space, creating value by acquiring, repositioning and managing independent hotels. The Denihan portfolio includes properties operating under The James and Affinia Hotels brands, as well as Manhattan luxury independents, The Surrey and The Benjamin, and affiliates including the Royal Palm in Miami. The company's uniquely guest-centric approach, refined through three generations of Denihan leadership, has made it an industry leader in hospitality, property and restaurant development, as well as hotel operations, management and marketing. More details can be found at www.denihan.com.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is a publicly traded real estate investment trust ("REIT") organized to opportunistically acquire and invest primarily in upper-upscale, full-service hotels located in large urban and resort markets with an emphasis on the major coastal cities. The company owns 20 hotels with a total of 5,542 guest rooms in nine states and the District of Columbia, including 14 markets: Bethesda, Maryland; San Francisco, California; Buckhead, Georgia; Washington, DC; Minneapolis, Minnesota; Stevenson, Washington; Santa Monica, California; Philadelphia, Pennsylvania; San Diego, California; Seattle, Washington; West Hollywood, California; Miami, Florida; Boston, Massachusetts; and New York, New York. For more information, please visit www.pebblebrookhotels.com.
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News Being Published on Hotel-Online Inquire Here
Hotel Trust and Denihan Hospitality Group Complete Joint Venture for
Six Manhattan Hotels Valued at $910 Million / August 2011
Hotel Trust and Denihan Hospitality Group Form Equity Partnership
Giving Pebblebrook 49% Ownership for Six of Denihan's New York City
Hotels / June 2011
Capital Partners Acquires the Royal Palm Hotel in South Beach, Florida
for $130 million, or Roughly $318,000 per key; Plans Include Complete
Renovation and Rebranding as The James Royal Palm; Denihan Hospitality
to Remain as Property Management Firm / April 2011
Hospitality Group Appoints Four General Managers at Affinia Hotels and
the Eastgate Tower in New York City / March 2011
Hospitality Group Appoints Don Fraser as General Manager of the
407-room Royal Palm in Miami Beach, Florida / March 2011
Hospitality Group Appoints Sims Foster as VP Restaurants and Bars /