NEW YORK, Oct. 20, 2016 /PRNewswire/ -- Denihan Investments, the Real Estate Investment and Development arm of Denihan, announced today the completion of a redemption agreement with Pebblebrook Hotel Trust (NYSE: PEB) for the transfer of ownership of six jointly-owned upper upscale hotels in New York, NY (the 'Manhattan Collection') at a total value of $820 million. The Manhattan Collection is a subset of Denihan's portfolio which also includes The James hotels in New York, Chicago and soon, West Hollywood, and New York City independents The Surrey and The Carlton.
Pursuant to the redemption agreement, Denihan becomes the sole owner of four of the assets, totaling 917 rooms – The Benjamin, Fifty NYC, Gardens NYC, Shelburne NYC (the latter three operated under the Affinia Hotel Collection). Pebblebrook assumed full ownership of Dumont NYC and Manhattan NYC, totaling 870 rooms.
"We are delighted to consolidate our ownership of the Manhattan Collection into these four hotels and are planning to invest significant capital into both the Gardens NYC (Upper East Side) and Shelburne NYC (Murray Hill)" said Glenn Wasserman, Chief Financial Officer of Denihan. "This transaction is part of Denihan's overall strategy to grow our business and continue to deliver superior guest experiences."
The other two Midtown Manhattan assets owned by Denihan – The Benjamin and Fifty NYC – underwent sizeable renovations in 2013 and 2014, respectively.
"We are bullish on the long-term value of the New York City market and continue to pursue growth opportunities in other U.S. destinations," said Patrick Denihan, CEO of Denihan Investments. "As a 53-year old family enterprise, we are committed investors and make decisions based on sustainable value for the company."
"2017 will be an exciting and critical year for the company," added Brooke Barrett, CEO of Denihan Hospitality. "In addition to our work on the Affinia portfolio, we look forward to opening The James West Hollywood in March, renovating and relaunching the Carlton, and embarking on an extensive renovation of The James Chicago – all in tandem with other exciting developments for The James brand."
"Denihan will continue to invest in and add assets to our current brand portfolio that will support our position as an undisputed leader among owners and operators of upper upscale and luxury boutique hotels in the United States," said Mr. Denihan.
Denihan is a privately-held, full service management and development company operating as Denihan Hospitality and Denihan Investments. The company owns and/or operates boutique hotels in major urban markets throughout the U.S. For over 50 years, Denihan has built a world-class lodging investment platform within the boutique/lifestyle hotel space, creating value by acquiring, repositioning and managing independent assets.
The Denihan portfolio includes properties operating under The James and Affinia Hotel Collection brands, as well as several Manhattan independent boutique hotels, including The Surrey, voted the #1 hotel in New York City in the Conde Nast Traveler 2016 'Readers' Choice Awards' and #1 hotel in New York City in Travel + Leisure's 2016 'World's Best Awards'. The Denihan portfolio also includes an impressive list of chef-driven restaurants and bars.
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.
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