Pebblebrook Sells Manhattan NYC Hotel for Hefty Price
- Nov 09, 2016
By Veronica Grecu
New York—Just weeks after Denihan Investments and Pebblebrook Hotel Trust split up their six-property hotel portfolio in Midtown Manhattan in an amicable redemption agreement that values the properties at a combined $820 million, Pebblebrook announced the imminent sale of one of the hotels involved in the deal.
The Bethesda, Md.-based real estate investment trust said it entered an agreement to sell the 618-key Manhattan NYC hotel for $217.5 million. The Real Deal identified the buyer as Highgate Hotels, a New York City-based real estate investment and hospitality management trust that has a portfolio valued at over $10 billion. Highgate is listed as Manhattan’s largest hotel operator, with a 10 percent market share and more than 10,000 rooms across the borough. Reportedly, Highgate teamed up with Isaac Chetrit’s AB & Sons and Ray Yadidi’s Sioni Group for the acquisition.
The sale of the 28-story hotel located at 373 7th Ave. is expected to close in the next 90 days. Pebblebrook also announced that proceeds from the sale will be used for general business purposes, such as potentially reducing the company’s outstanding debt or repurchasing the company’s common shares.
Also known as Affinia Manhattan, the 474,000-square-foot building was completed in 1929. According to the hotel’s website, rates per room here start at nearly $200 per night.