RobertDouglas Advises Denihan In The $320 Million Financing Of Four Manhattan Hotels
RobertDouglas is pleased to announce that it advised Denihan in procuring $320 million of senior debt to refinance the Benjamin, Shelburne NYC, Fifty NYC, and Gardens NYC. The five-year financing was provided by Broad Street Real Estate Credit Partners II, L.P., a credit fund managed by the Merchant Banking Division of Goldman Sachs.
The four-hotel, 917-room portfolio is wholly-owned by Denihan following the restructuring of its joint venture with Pebblebrook Hotel Trust. The portfolio includes three properties operating within the Affinia Hotel Collection, as well as the luxury independent, 209-room Benjamin located at Lexington Avenue and 50th Street. The Affinia assets – also located in Manhattan and managed by Denihan – include the Shelburne NYC in Murray Hill; Fifty NYC in Midtown Manhattan; and Gardens NYC on the Upper East Side.
“Despite the difficult operating conditions in New York City, the Denihan portfolio includes some of the strongest performing hotels in the market and lenders responded positively to this financing” observed Doug Hercher, Principal and Managing Director of RobertDouglas. Chris Ropko, Senior Director of RobertDouglas, added “we are at a transitional moment in the capital markets, with regulatory changes and slowing hotel fundamentals, particularly in Manhattan, creating challenges for lenders. Goldman Sachs was unique in its ability to see through the headlines and make a loan that reflects their long-term confidence in the New York market, the portfolio, and the Denihan organization.”
Rob Stiles, Principal and Managing Director of RobertDouglas added, “The Denihan family has delivered legendary hospitality in New York City through multiple generations. Their long-term commitment to their properties and the market drove a very accommodative loan structure that will allow Denihan to meet its objectives and position the company for future growth.”