NEW YORK CITY—The acquisition of The James Hotel Group (for now just a single property—The James Chicago) by Denihan Hospitality Group is seen from both sides as a win-win: It gives Denihan a powerful prototype with which to expand into gateway American cities, and it allows former James CEO Brad Wilson—now an executive vice president at Denihan—access to Denihan’s finances and customers.

The James Chicago—to date the only property of The James Hotel Group—is focused on hip luxury.

“It gives us an equity background to really blow up this brand through both joint-venture acquisitions and management contracts,” Wilson says. James hotel properties already are under development in New York City, West Hollywood and Miami Beach.

From Denihan’s side, between The James’ sleek and hip luxury hotel model and the company’s more traditional-luxury Benjamin brand, plus Affinia Hotels (Denihan’s upscale, flexible concept), executives believe they now have a hotel concept to fit any market. While each brand targets affluent travelers, each is geared toward a different demographic and psychographic.

For example, in markets saturated with classic luxury hotels, there may be an opening for a more hip, urban-feeling luxury product like The James, which caters to younger travelers desirous of a modern residential experience amid an upbeat atmosphere. And in the largest key cities, like New York City, Chicago and Los Angeles, Denihan expects its various brands to complement each other.

“We look at (the James acquisition) as giving us more flexibility to target different assets, and it’s going to help us broaden our segment reach in terms of customers,” says Brooke Barrett, who, as co-CEO, runs Denihan with her brother, Patrick Denihan. “If we’re going to be targeting particular cities, The James brand is going to just be another arrow in our quiver, at this point,” she says.

Look for ongoing growth, as well, from the Affinia brand, which has taken hold in seven locations, including recent openings in Washington, D.C., and Chicago. Each Affinia property features its own unique positioning—from the Affinia Dumont, “A Fitness Suite Hotel,” to the Affinia Gardens, “A Tranquil Suite Hotel.”

Between the three brands, Denihan expects to have a presence in at least 10 key U.S. markets by 2015. Boston, Philadelphia, Atlanta, Dallas, San Diego and Seattle are among the cities on the company’s expansion radar.

Denihan will promote the brands independent of one another, and primarily online or via word of mouth, says Barrett, who does not foresee much cross-promotion. “It’s about not confusing the customers and the marketplace,” she says. “We’re trying to avoid brand-creep.”

One thing in common across the three brands is celebrity-chef or restaurateur headlined F&B options. The group will continue cultivating relationships with high-profile chefs and restaurateurs to ensure that options are in place before deals happen for new properties.

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