Investment management firm Cain, whose hospitality properties include the Delano Miami Beach hotel in Florida, is set to open New York’s first Delano in Manhattan’s SoHo.
Cain bought The Dominick, a 46-story, 390-key hotel at 246 Spring St., between Sixth Avenue and Varick Street, and plans to redevelop and rebrand the property as Delano SoHo New York luxury condo hotel, according to Madison Realty Capital and Newbond Holdings. The pair of lenders originated a $180 million loan to finance’s Cain acquisition and redevelopment of The Dominick.
The purchase price was $175 million, according to CoStar data and an email from a spokeswoman for the lenders.
“The global demand for authentic luxury-lifestyle experiences has never been stronger, particularly in leading gateway cities,” said Eric Poretsky, a senior managing director and head of U.S. equity at Cain, in a statement. “New York remains one of the most dynamic hospitality markets in the world, and SoHo offers the ideal backdrop for Delano’s pioneering collection of design, culture and creativity. Our investment in this asset reflects our long-term belief in the sector and our focus on building a portfolio of distinctive properties that define their locations.”
Cain’s portfolio spans residential, hospitality, commercial and mixed-use developments and includes One Beverly Hills, a 17.5-acre mixed-use destination in Beverly Hills, California, as well as the Waldorf Astoria Beverly Hills and Delano Miami Beach in Florida. Cain also has an investment in the Aman brand, as well as in Raffles Boston Hotel & Residences, which previously received a ground-up construction loan from Madison Realty Capital, the lenders said.
Cain had been known as Cain International until it rebranded as just Cain this month.
Cain’s plan to open New York’s first Delano comes as the luxury brand is “undergoing a major global relaunch," the lenders said. Delano Dubai and Maison Delano Paris opened recently, and the historic Delano Miami Beach, built in 1947 and now under renovation, will reopen in coming months, they said. The Delano London is set to open next year. The Delano flag has an existing portfolio and pipeline of more than 1,000 keys across several international destinations
In a separate statement, Cain said it bought a minority stake in the Delano brand in 2024 and continues to work with its majority partner, hospitality company Ennismore, to consider further expansion of the brand across Europe, the Middle East, Asia and Central America. Ennismore will manage the Delano SoHo New York through the partnership, Cain said.
Hotels in the Village/SoHo/Tribeca market, where the property sits, “continue to experience strong growth,” with 12-month revenue per available room rising by 8.4% through August, the second-highest growth rate of Manhattan's six hotel clusters, according to a CoStar analysis.
The area’s “eclectic nature, when contrasted against the more corporate and group-oriented submarkets in Midtown, drives a high proportion of leisure demand and relatively low levels of group demand,” the CoStar report said.
The newly acquired Manhattan hotel in SoHo is also close to the Hudson Square neighborhood, which houses major corporate anchors including Disney and Google, the lenders said.