Pebblebrook Hotel Trust and Denihan Hospitality Group Execute Agreement to Joint Venture Six Manhattan Hotels for $910 Million (United States)
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Pebblebrook Hotel Trust and Denihan Hospitality Group Execute Agreement to Joint Venture Six Manhattan Hotels for $910 Million (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- New brands / Affiliations
This is a press release selected by our editorial committee and published online for free on 2011-06-23
Pebblebrook Hotel Trust (NYSE: PEB) (“Pebblebrook”) and the Denihan Hospitality Group (“Denihan”) today announced that they have entered into agreements pursuant to which Pebblebrook will invest in a joint venture with affiliates of Denihan that own six upper upscale hotels in Manhattan. The six upper upscale hotels – Affinia Manhattan, Affinia Shelburne, Affinia Dumont, Affinia 50, Affinia Gardens and The Benjamin – currently comprise 1,640 guestrooms, which will be increased to 1,730 guestrooms following the completion of a renovation at the Affinia Manhattan this fall.
The transaction values the six hotels at approximately $910 million. The hotels are currently subject to approximately $600 million in existing first mortgage and mezzanine debt and Pebblebrook will make an approximate $152 million equity investment in the joint venture in exchange for its 49% interest. Affiliates of Denihan will continue to own the remaining 51% interest in the joint venture. Pebblebrook and Denihan will share joint control of all operating and financial decisions for the joint venture.
Pebblebrook expects to fund its investment with available cash and borrowings from its credit facility. The hotels will be leased to a joint venture lessee owned by Pebblebrook and Denihan. The hotels will continue to be managed by Denihan.
The consummation of the transaction is subject to approval of the lenders to the joint venture. Pebblebrook expects the transaction to close within the next 90 days; however, because the transaction is subject to customary closing conditions, the Company can give no assurance that the transaction will be consummated during this time period, or at all.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) 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 14 hotels, totaling 3,814 guest rooms, in eight states and the District of Columbia, including 13 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; and Boston, Massachusetts. For more information, please visit www.pebblebrookhotels.com.
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.
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