US-based Pebblebrook Hotel Trust has closed the sale of its Manhattan NYC hotel in New York to Highgate Hotels for $217.5m.
Also known as Affinia Manhattan, the upscale, full service hotel measures 474,000ft2 and has 618 rooms and is located in 371 7th Avenue at 31st street New York.
Pebblebrook Hotel Trust president, CEO and chairman Jon Bortz said: “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 $500m 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.”
The proceeds from the sale will be used to pay off the $140m debt taken by Manhattan NYC and also to be used for other general business purposes such as further paying off the company’s outstanding debt or repurchasing the company’s common shares.