Cain Closes $175M Acquisition of Manhattan’s Dominick Hotel With Rebrand on Tap

The Dominick Hotel at 246 Spring Street is about to go through a rebrand and transformation as Cain closes on its $175 million acquisition of the Manhattan property once known as the Trump SoHo, Commercial Observer has learned.

The 390-key hotel will operate under the Delano banner, the name of Cain’s prominent Miami Beach-born brand, following a renovation of the 46-story hotel built in 2011 and previously owned by CIM Group.

This “refresh” and activation of the food and beverage component of a fairly new and well-managed asset shouldn’t take too long either, Eric Poretsky, head of U.S. real estate for Cain, told CO.

“CIM owned this in a legacy fund, and so they were trying to figure out what to do, and, candidly, as Cain looks to grow its platform, this asset fits the profile exceptionally well with the types of deals we like to do, which really is about executing business plans to create iconic assets,” Poretsky said.

While there may be some ripples in the hospitality industry stemming from international politics, the site’s location near SoHo and Hudson Square should boost its prospects. Both districts have seen strong office and retail fundamentals. 

“[The Dominick] is a 15-year-old asset that hasn’t had a substantive capital upgrade or facelift in that time,” Poretsky said. “It’s in need of that, but underpinning this is really good infrastructure, really good bones. So it really is a renovation that touches all the major key spaces, but looks more of a refresh than any kind of substantive gut job.”

The Dominick, in other words, may not need the level of investment in repositioning as the Delano Miami Beach, which was built in the 1960s and last renovated in the 1990s before Cain acquired it in April 2023. The South Florida hotel is becoming the firm’s go-to brand for the luxury experiences it offers guests.

Part of this is because the Delano was an iconic Miami Beach property that Cain capitalized on rather than replaced with another concept.

“As we looked at the Delano brand, we saw a brand with a globally recognized name as the leading lifestyle luxury brand,” Poretsky said. “Whether it be in Miami, Dubai, Paris or Miami and bringing it to New York and other markets around the world … there’s a huge focus on bringing an authentic local character.”

The Dominick currently has typical rooms spanning more than 400 square feet, and 37 percent of those accommodations are suites.

While Poretsky said it is too early to speak to the design elements of the asset after the renovation, Cain is going for a wellness approach that is a little more “light and airy” than the current feel.

“Today, it’s a bit dark,” Poretsky said. “It’s got a very intimate environment to it. We’re going to try to create more activity in and around all these common spaces.”

Mark Hallum can be reached at mhallum@commercialobserver.com.