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RobertDouglas Advises Denihan Hospitality Group in the Restructuring of its Joint Venture Partnership with Pebblebrook Hotel Trust

NEW YORK - 20 October 2016

RobertDouglas Advises Denihan Hospitality Group In The Restructuring Of Its Joint Venture Partnership With Pebblebrook Hotel Trust On The Manhattan Collection Portfolio

RobertDouglas announced today that it acted as the exclusive financial advisor to Denihan in the restructuring of its joint venture partnership with Pebblebrook Hotel Trust (NYSE: PEB) on six upper upscale hotels in Manhattan known as the Manhattan Collection. The restructuring includes an exchange of ownership interests, with Denihan assuming full ownership of The Benjamin, Shelburne NYC, Fifty NYC, and Gardens NYC hotels and Pebblebrook assuming full ownership of the Manhattan NYC and Dumont NYC. The transaction values the six hotel portfolio at $820 million, or roughly $460,000 per key.

“After several months of cooperative discussions and negotiations with Pebblebrook and its advisors, we settled on a solution that fulfills Denihan’s desire to remain a concentrated long-term owner in Manhattan, consistent with their family’s legacy,” said Robert Stiles, Managing Director and Principal of RobertDouglas.

“Notwithstanding the relatively strong performance of this portfolio in the face of the headwinds in New York City, Pebblebrook, like many REITs, has been interested in reducing its exposure in New York and gaining full ownership of its properties,” notes Chris Ropko, Senior Director of RobertDouglas. “We were able to achieve balanced valuations on both sides of the transaction that reflect current market conditions as well as the unique nature of these properties.”

“We are delighted to have been able to assist Denihan, an award-winning, multi-generational owner/operator of luxury and upper upscale hotels, structure a solution that meets its own long-term investment goals as well as the needs of its publicly-traded investment partner,” remarked Douglas Hercher, Managing Director and Principal of RobertDouglas. “The constantly evolving capital markets force us to evaluate a wide range of alternatives, but we believe this transaction positions the company for robust growth going forward in its core New York portfolio and also more broadly with its James brand.”

“The team at RobertDouglas systematically worked with us to advise our management team and Advisory Board on the universe of potential outcomes,” said Glenn Wasserman, Chief Financial Officer of Denihan. “Their depth of relationships and ability to reach across the aisle and work hand-in-hand with Pebblebrook and its advisors helped us achieve our goals.”

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