BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (“Pebblebrook”) and the Denihan
Hospitality Group (“Denihan”) today announced that they have entered
into agreements pursuant to which Pebblebrook will invest in a joint
venture with affiliates of Denihan that own six upper upscale hotels in
Manhattan. The six upper upscale hotels – Affinia Manhattan, Affinia
Shelburne, Affinia Dumont, Affinia 50, Affinia Gardens and The Benjamin
– currently comprise 1,640 guestrooms, which will be increased to 1,730
guestrooms following the completion of a renovation at the AffiniaManhattan this fall.
The transaction values the six hotels at approximately $910 million. The
hotels are currently subject to approximately $600 million in existing
first mortgage and mezzanine debt and Pebblebrook will make an
approximate $152 million equity investment in the joint venture in
exchange for its 49% interest. Affiliates of Denihan will continue to
own the remaining 51% interest in the joint venture. Pebblebrook and
Denihan will share joint control of all operating and financial
decisions for the joint venture.
Pebblebrook expects to fund its investment with available cash and
borrowings from its credit facility. The hotels will be leased to a
joint venture lessee owned by Pebblebrook and Denihan. The hotels will
continue to be managed by Denihan.
The consummation of the transaction is subject to approval of the
lenders to the joint venture. Pebblebrook expects the transaction to
close within the next 90 days; however, because the transaction is
subject to customary closing conditions, the Company can give no
assurance that the transaction will be consummated during this time
period, or at all.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate
investment trust (“REIT”) organized to opportunistically acquire and
invest primarily in upper upscale, full-service hotels located in large
urban and resort markets with an emphasis on the major coastal cities.
The company owns 14 hotels, totaling 3,814 guest rooms, in eight states
and the District of Columbia, including 13 markets: Bethesda, Maryland;
San Francisco, California; Buckhead, Georgia; Washington, DC;
Minneapolis, Minnesota; Stevenson, Washington; Santa Monica, California;
Philadelphia, Pennsylvania; San Diego, California; Seattle, Washington;
West Hollywood, California; Miami, Florida; and Boston, Massachusetts.
For more information, please visit www.pebblebrookhotels.com.
About Denihan Hospitality Group
Denihan Hospitality Group is a privately-held, full-service hotel
management and development company that owns and operates 13 boutique
hotels in major urban markets in the U.S. Over the past 50 years, the
Denihan family has built a world class lodging investment platform
within the boutique hotel space, creating value by acquiring,
repositioning and managing independent hotels. The Denihan portfolio
includes properties operating under The James and Affinia Hotels brands,
as well as Manhattan luxury independents, The Surrey and The Benjamin,
and affiliates including the Royal Palm in Miami. The company’s uniquely
guest-centric approach, refined through three generations of Denihan
leadership, has made it an industry leader in hospitality, property and
restaurant development, as well as hotel operations, management and
marketing. More details can be found at www.denihan.com.
This press release contains certain “forward-looking” statements
relating to, among other things, potential property acquisitions and
projected earnings, expenses and demand.Forward-looking
statements are generally identifiable by use of forward-looking
terminology such as “may,” “will,” “should,” “potential,” “intend,”
“expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,”
“could,” “project,” “predict,” “forecast,” “continue,” “plan” or other
similar words or expressions.Forward-looking statements are
based on certain assumptions and can include future expectations, future
plans and strategies, financial and operating projections or other
forward-looking information.Examples of forward-looking
statements include the following: projections of hotel-level EBITDA and
net operating income after capital reserves, the Company’s expenses,
share count or other financial items; descriptions of the Company’s
plans or objectives for future operations, acquisitions or services;
forecasts of the Company’s future economic performance and potential
increases in average daily rate, occupancy and room demand; and
descriptions of assumptions underlying or relating to any of the
foregoing expectations regarding the timing of their occurrence.These
forward-looking statements are subject to various risks and
uncertainties, many of which are beyond the Company’s control, which
could cause actual results to differ materially from such statements.These risks and uncertainties include, but are not limited to, the
state of the U.S. economy, supply and demand in the hotel industry and
other factors as are described in greater detail in the Company’s
filings with the Securities and Exchange Commission (“SEC”), including,
without limitation, the Company’s Annual Report on Form 10-K for the
year ended December 31, 2010.Unless legally required, the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
For further information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
sections of the Company’s SEC filings, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section of the
Company’s website at www.pebblebrookhotels.com
and at www.sec.gov
.
All information in this release is as of June 22, 2011.The
Company undertakes no duty to update the statements in this release to
conform the statements to actual results or changes in the Company’s
expectations.The Company assumes no responsibility for the
contents or accuracy of the information on any of the non-Company
websites mentioned herein, which are included solely for ease of
reference.
For additional information or to receive press releases via email,
please visit our website at
www.pebblebrookhotels.com
Source: Pebblebrook Hotel Trust
Contact:
Pebblebrook Hotel Trust
Raymond D. Martz, 240-507-1330
Chief
Financial Officer
or
Denihan Hospitality Group
Katie
Meyer, 646-424-2614
Vice President of Public Relations