03 CASE STUDIES

Denihan Hospitality Group - Portfolio Refinancing

Assignment Overview

RobertDouglas advised Denihan Hospitality Group in the $320 million refinancing of its four-property portfolio comprised of 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.

Despite difficult capital market conditions, regulatory changes, and decelerating hotel fundamentals in the Manhattan market, the financing request ultimately drew very strong interest from a number of lenders based on the quality of Denihan sponsorship and legacy in the New York hospitality arena, the portfolio’s strong operating performance relative to its peers, and the long-term view on the importance and vitality of the New York market.  In a highly competitive process, Goldman Sachs ultimately provided the most attractive terms, covenants, and structure that best aligned with Denihan’s needs and interests.

Portfolio Background

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.

Deal Highlights

Client:
Financier:
Sale Proceeds:
Key Count:
 Denihan Hospitality Group
Broad Street Real Estate Credit Partners II, L.P.
$320 million
Four hotels (917 total keys)

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