SAN FRANCISCO & MINNEAPOLIS – Flynn Properties Inc., proprietor of economic actual property, luxurious resorts and choose service lodge properties in America and overseas, in a three way partnership with Värde Companions, a number one international different funding agency, right this moment introduced that it has acquired an 80% three way partnership curiosity in 89 choose service and prolonged keep resorts in a $1.1 billion implied complete enterprise worth transaction from associates of Highgate and Cerberus Capital Administration, L.P. (“Cerberus”).
With properties situated all through the US, the portfolio includes 58 Marriott-branded resorts, 24 Hilton-branded resorts, 4 Radisson-branded resorts, 2 IHG-branded resorts and 1 Alternative-branded lodge, which is able to endure capital enhancements over time. Associates of Highgate and Cerberus will retain a 20% curiosity within the funding, and Highgate will proceed to handle the properties on behalf of the three way partnership. That is the second three way partnership between Flynn Properties and Värde Companions; final 12 months the companions acquired a portfolio of 20 Marriott- and Hilton-branded choose service resorts from Apple Hospitality.
We’re excited to announce the addition of those resorts to our portfolio. This acquisition is a part of a broader enterprise technique of Flynn Properties to extend its restricted service lodge footprint, which has proved to be the most effective performing sectors within the trade. We’re additionally excited by the caliber of properties included on this deal, because the portfolio’s manufacturers are international hospitality icons recognized for internet hosting a few of the world’s most loyal vacationers for enterprise and leisure whereas providing exceedingly sturdy visitor loyalty packages, which we consider will likely be a key supply of visitor income and retention. Flynn Properties and Värde Companions are thrilled to execute this transaction with Highgate and Cerberus, and to work going ahead with the numerous vital franchisors and associates throughout the portfolio. Greg Flynn, Founder, Chairman and Chief Government Officer of Flynn Properties
This acquisition will convey Flynn Properties’ restricted service lodge portfolio to 115 properties. Flynn Properties is a division of San Francisco-based Flynn Holdings, which has two principal companies: actual property and eating places. Flynn Properties’ prior lodge investments embrace quite a few restricted service and prolonged keep resorts in addition to 5 super-luxury resorts: Esperanza and the Chileno Bay Resort, each situated in Los Cabos, Mexico, the Carneros Resort & Spa and Solage, each situated within the Napa Valley, and the Lodge Madeline in Telluride, Colorado. Its business investments consist primarily of tech-oriented workplace buildings on the West Coast which have totaled over 3 million sq. ft. Its affiliate, Flynn Restaurant Group LP, is the most important franchise restaurant operator on the earth and one of many 20 largest foodservice corporations of any type in the US, proudly owning and working 2,400 eating places in 44 states producing $4 billion in gross sales and using roughly 73,000 folks.
The lodge sector continues to strengthen amidst a posh macro backdrop, demonstrating its capability to supply traders the potential for rising, inflation-protected cashflows. These properties recovered rapidly from the pandemic and have been performing effectively, indicative of the standard of their manufacturers and the continued demand for restricted service and prolonged keep resorts. As this cycle continues to evolve, we consider there will likely be additional alternatives to speculate selectively in high-quality property which are effectively positioned to capitalize on the sturdy demand for enterprise and leisure journey. We’re happy to companion for the second time with Flynn Properties to accumulate this curiosity in one other portfolio of properties in enticing areas with compelling market provide/demand dynamics. Tim Mooney, World Head of Actual Property at Värde Companions
Deutsche Financial institution Securities Inc. served as monetary advisor to Flynn Properties and Värde Companions on this transaction.
About Värde Companions
Värde Companions is a number one international different funding agency specializing in credit score and credit-related property. Based in 1993, the agency has invested by way of a number of credit score cycles, constructing on its roots in particular conditions and distressed to speculate greater than $90 billion throughout the credit score high quality and liquidity spectrum in each private and non-private markets. Värde presently manages over $13 billion in property with groups in North America, Europe, and Asia Pacific centered on Company & Traded Credit score, Actual Property, and Monetary Companies. For extra info, go to.
About Flynn Properties Inc.
Flynn Properties Inc. has substantial expertise in business and hospitality actual property funding. Based in 1994 and based mostly in San Francisco, CA, Flynn Properties has owned in extra of three million sq. ft of tech-oriented workplace buildings on the West Coast. Along with 115 premium-branded choose service and prolonged keep resorts, Flynn Properties’ hospitality investments additionally embrace the luxurious resorts Esperanza and the Chileno Bay Resort, each situated in Los Cabos, Mexico, the Carneros Resort and Solage, each situated within the Napa Valley, and the Lodge Madeline in Telluride. Its affiliate, Flynn Restaurant Group LP, is the most important franchise restaurant operator on the earth and one of many 20 largest foodservice corporations of any type in the US, proudly owning and working 2,400 eating places in 44 states producing $4 billion in gross sales and using roughly 73,000 folks. For extra info, go to.