DHG closes on half-billion dollar hotels recap.

The Denihan Hospitality Group (DHG), formerly Affinia Hospitality, has completed a $532 million recapitalization of The Benjamin and Affinia Hotels portfolios and formed a new hotel management company to own and operate the two brands as well as manage other branded and independent properties.

DHG's mission is to grow its portfolio nationally through acquisitions, management contracts, joint ventures and investment partnerships. The company will seek to expand both of its core brands as well as leverage its expertise to manage other branded and independent properties.

DHG also announced that ownership of these assets has been consolidated from six to two principals, Patrick Denihan and Brooke Barrett, as co-CEOs, both of whom were part of the team of managing directors of the former Affinia Hospitality.

Core assets of the DHG portfolio currently include the Affinia Dumont, Affinia 50, Affinia Gardens, Affinia Manhattan and The Benjamin, its luxury brand, which DHG will own and manage with the goal of expanding both brands to key markets throughout the U.S. The Shelburne Murray Hill, currently operated by DHG as an independent property, is also included in the recapitalization and will be relaunched as an Affinia hotel following a significant renovation in 2006.

"The formation of DHG is integral to our plans for growth, most significantly because of the consolidation of ownership and the additional resources realized from the recapitalization," said Denihan.

"In today's climate, there are enormous opportunities to expand both The Benjamin and Affinia brands into the top 25 urban markets as well as to grow the entire portfolio through management contracts with other brands and independent hotels," he continued.

DHG will maintain its New York base of operations, which includes its central reservations system, sales and marketing, operations and development.

Financing for the recapitalization was provided by Credit Suisse First Boston. Sonnenblick-Goldman, LLC, acted as an advisor to DHG.

"The DHG portfolio is comprised of six well-positioned, distinct, New York assets, with a strong national following, which enabled us to create a highly competitive process among the lending community. This will also enable DHG to grow its Affinia Hotels and Benjamin brands nationally," said Mark Gordon, principal and managing director of Sonnenblick-Goldman, LLC.

Mark Gordon, principal and managing director of Sonnenblick-Goldman, LLC, commented, "The DHG portfolio is comprised of six well-positioned, distinct, New York assets with a strong national following, which enabled us to create a highly competitive process among the lending community. This strong industry recognition will also enable DHG to grow its Affinia Hotels and Benjamin brands nationally."