Two Hotels Making Money
Denihan is renovating its Affinia 50th to split a bunch of rooms in two. (KingSolomon must be the new property manager.) And theres plenty of demand to fill the 40 extra rooms the boutique owner is adding to the market.
Denihans Ellen Brown, whos speaking at Bisnows New York Hotel Investment Summit on Wednesday morning at The Roosevelt, tells us the de-suite-ing of the 50th and Third property follows similar work in the company's NYC portfolio--at the Affinia Manhattan across from Penn Station, the Surrey at 76th and Madison, and the Affinia Shelburne at 37th and Park. Despite the smaller rooms, room rates have risen, Ellen says, adding that the updated rooms use space more efficiently. Ellens next big project: scouting adaptive reuse opps in the major, coastal markets.
In Westchester, Lodging Capital Partners is still working on filling the Hilton's 450 beds, but Ian Davis says his firm is getting there. It bought the 450-key hotel in spring 2011 and invested $7M on improvements that delivered nine months ago, raising occupancy from the low 50% range to the high-60s. That's when operating leverage starts to kick in, delivering higher margins. The competition has taken notice, Ian says, and started renovating other hotels in the area. LCP, meanwhile, recently bought hotels in Detroit and Portland, Ore. Last chance to sign up to hear from Ellen, Ian, and eight other hotel all-stars.
