Pebblebrook Hotel Trust (NYSE: PEB) said it will acquire an equity interest of 49% in six Manhattan properties including the Affinia Manhattan, Affinia Shelburne, Affinia Dumont, Affinia 50, Affinia Gardens and The Benjamin, in exchange for a $153.6 million equity investment.
The aggregate number of rooms for all properties will be 1,730 once a renovation of the Affinia Manhattan is complete. Affinia is a boutique hotel brand with locations in Washington, D.C. and Chicago, in addition to New York City.
"We are excited to acquire such a unique collection of six distinctive high quality hotels in terrific locations throughout Midtown Manhattan, and at a significant discount to replacement cost," remarked Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. "Manhattan has been one of our top target markets and we are extremely excited to be taking advantage of this exceptional opportunity to acquire these well-located hotels, which continue to benefit from the strength of the recovery and growth of New York City."
The properties will still be managed by Denihan Hospitality who will retain the remaining 51% equity interest in the partnership for at least five years.
Net operating income for the group of hotel properties is projected to be as high as $14.8 Million for Pebblebrook's portion starting from August 1, 2011 and ending December 31, 2011. The joint venture brings the number of hotel properties under ownership for the Bethesda based lodging real estate investment trust to 20.
Pebblebrook Hotel Trust will announce its second quarter earnings results August 3, 2011.