03 Case Studies

Denihan Manhattan Collection Portfolio Restructuring

Assignment Overview

RobertDouglas advised Denihan Hospitality Group in the restructuring of its joint venture partnership with Pebblebrook Hotel Trust consisting of six upper-upscale hotels in Manhattan known as the Manhattan Collection.  The restructuring ultimately included an exchange of ownership interests, with Denihan assuming full ownership of The Benjamin, Shelburne NYC, Fifty NYC, and Gardens NYC hotels and Pebblebrook assuming full ownership of the Manhattan NYC and Dumont NYC. The transaction values the six-hotel portfolio at $820 million, or roughly $460,000 per key.

After an array of structural solutions and alternatives were explored, the ultimate transaction fulfilled both Denihan’s desire to remain a concentrated long-term owner in New York consistent with the family’s legacy, as well as Pebblebrook’s interest in reducing exposure to the New York market and gaining full ownership and disposition control of their remaining properties.

Denihan Hospitality Group

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.

Deal Highlights

Client:
JV Partner:
Portfolio Valuation:
Portfolio Size:
 Denihan Hospitality Group
Pebblebrook Hotel Trust
$820 million
Six hotels (1,782 total keys)

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Denihan Hospitality Group - Portfolio Refinancing