Pebblebrook REIT buys stakes in six Denihan Hospitality hotels in Midtown

New York /
Jun.June 22, 2011 08:44 AM

Jon Bortz’s Maryland-based Pebblebrook Hotel Trust is purchasing a 49 percent stake in six Manhattan boutique hotels owned by Denihan Hospitality Group for $152 million, according to the Wall Street Journal. Pebblebrook will also assume around $294 million of the hotels’ debt. The hotels include five Affinia properties and the Benjamin hotel, all in Midtown.

Patrick Denihan and Brooke Denihan Barrett will retain a 51 percent stake in the six hotels and continue to manage the properties. Proceeds from the sale will go towards expanding their assets beyond New York. “Our plan is to add two hotels per year, either owned or managed,” co-CEO Patrick Denihan said.

The deal valued the six properties at $910 million, or $526,000 per room. The average per-room price for hotel deals in Manhattan stands at $447,487 so far in the second quarter. The higher price for this deal is most probably reflective of a larger room size.

Pebblebrook has spent almost $1.6 billion since launching in 2009, the Journal said, purchasing hotels such as the InterContinental Buckhead in Atlanta, the Viceroy in Miami and the Sir Francis Drake Hotel in San Francisco. [WSJ]


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