Flynn Properties and Värde Companions have acquired an 80% three way partnership curiosity in 89 choose service and prolonged keep lodges in a deal whose implied complete enterprise worth is $1.1 billion. The sellers are associates of Highgate and Cerberus Capital Administration, L.P.
The portfolio, which is unfold throughout the US, consists of 58 Marriott-branded lodges, 24 Hilton-branded lodges, 4 Radisson-branded lodges, 2 IHG-branded lodges and 1 Selection-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 yr the companions acquired a portfolio of 20 Marriott- and Hilton-branded choose service lodges from Apple Hospitality.
“The lodge sector continues to strengthen amidst a posh macro backdrop, demonstrating its skill to supply traders the potential for rising, inflation-protected cashflows,” mentioned Tim Mooney, International Head of Actual Property at Värde Companions, in ready remarks. “As this cycle continues to evolve, we consider there shall be additional alternatives to speculate selectively in high-quality belongings which are nicely positioned to capitalize on the strong demand for enterprise and leisure journey. “
Deutsche Financial institution Securities Inc. served as monetary advisor to Flynn Properties and Värde Companions on this transaction.