NEW YORK CITY-The Denihan Hospitality Group--formerly Affinia Hospitality-- has completed a $532-million recapitalization of the Benjamin and Affinia Hotels portfolios. DHG also formed a new hotel management company to own and operate the two brands as well as manage other branded and independent properties.
The firm's core assets currently include the Affinia Dumont, Affinia 50, Affinia Gardens, Affinia Manhattan and the Benjamin. DHG will own and manage with the goal of expanding both brands. According to company officials, there are three acquisitions planned for this year with a focus on the Chicago, Boston, Washington, DC, Los Angeles, San Francisco and Miami markets.
The Shelburne Murray Hill, currently operated by DHG as an independent property, was also included in the recapitalization and will be reflagged as an Affinia hotel following a renovation. DHG plans to grow its portfolio nationally through acquisitions, management contracts, joint ventures and investment partnerships. Ownership of the boutique assets has been consolidated from six to two principals; Patrick Denihan and Brooke Barrett, serve as co-CEOs. "In today's climate, there are enormous opportunities to expand both the Benjamin and Affinia brands into the top 25 urban markets as well as to grow the entire portfolio through management contracts with other brands and independent hotels," Denihan says.
The company will maintain its base here. Financing for the recapitalization was provided by Credit Suisse First Boston. Sonnenblick-Goldman LLC, acted as an advisor.
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