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Founded Year

1942

About Denihan Hospitality Group

Denihan Hospitality Group manages and develops hotels under three brands: The James, The Benjamin, and Affinia.

Denihan Hospitality Group Headquarter Location

551 5th Avenue

New York, New York, 10176,

United States

212-465-3700

Latest Denihan Hospitality Group News

Ashkenazy pushes Surrey Hotel to sell off assets

Jul 16, 2020

Bloomberg The Ashkenazy Acquisition Group is forcing the Surrey Hotel to sell off all its assets to salvage a $45 million loan. Ashkenazy owns the mortgage on the luxe lodging's location at 20 East 76th Street,, but the Denihan Hospitality Group controls the brand. The Surrey has reportedly been struggling to pay rent during the pandemic and the mysterious ground lessor wants to terminate its lease at the property. After the property investor and the hotel couldn't agree on a budget to restructure the finances of the struggling hospitality group, a Manhattan Bankruptcy Court judge allowed the conversion from Chapter 11 to Chapter 7. Related Articles There were several issues that the two parties could not agree on. The investment firm, led by billionaire Ben Ashkenazy, agreed to pay the hotel’s taxes on a monthly basis from July 1 through December as well as utility and security expenses which would amount to $2 million over that time, according to the filings, but the Surrey has said it needs more than double that—$5 million over the next three months—to “preserve and protect the hotel.” Ashkenazy refused to cover the rent on the hotel’s ground lease, which Denihan has allegedly not paid since March. The hotel’s ground lessor, Surrey Realty Associates LLC, attempted to terminate the lease, which is also Ashkenazy’s collateral under the now-$60 million loan agreement. If the lease were to be terminated, Ashkenazy would lose it all, filings said. His attorney, Kevin Nash, claimed that Denihan was working with the ground lessor to terminate the lease to free itself from debt and claims that creditors like Ashkenazy could bring. The real estate investor strong armed Denihan into an involuntary Chapter 11 bankruptcy in April to stop the lessor from taking back the lease, according to court records. “Bankruptcy is the only available forum for relief at this time as the New York state courts are closed to commercial disputes,” Nash wrote. Still, the ground lessor is allegedly refusing to rescind the default against Denihan and is gunning to take the lease, according to court papers. The lawyer claims that the owner of the lot is taking advantage and trying to "capitalize on the Covid-19 crisis to the detriment of all other creditors and stakeholders,” wrote Nash. “The commencement of this involuntary case stays the ground lessor’s brazen acts of brinkmanship.” Under Chapter 7, Ashkenazy will forgo restructuring plans and instead sell the hotel’s assets to recover as much of the debt as he can, though it’s too soon to say which assets he will go after, said Nash. Attorneys for Denihan could not be immediately reached for comment. RECOMMENDED FOR YOU

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