The Manhattan NYC Hotel, a former Affinia property, was sold by Pebblebrook Hotel Trust to an investor group made up of Patriarch Equities, Sioni Group and Highgate.
The 618-room hotel, located at 371 Fifth Avenue, was sold for $217.5 million. It will be renamed The Stewart Hotel.
“We are very pleased with the sale of the Manhattan NYC,” said Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “This sale represents our second significant step towards successfully reducing our exposure to the New York market. The Manhattan NYC marks the fourth hotel sold under our strategic disposition plan that we initiated earlier this year, which has generated almost $500 million in gross proceeds. These dispositions have allowed us to take advantage of the imbalance between the higher private market values for our hotels and the lower value of our company as determined by the public market.”
Proceeds from the sale of the Manhattan NYC will be utilized to repay the $140.0 million loan secured by the property by Pebblebrook and for general business purposes which may include further reducing the Company’s outstanding debt or repurchasing the Company’s common shares. The sale of Manhattan NYC closed on December 20, 2016.