SAN FRANCISCO and MINNEAPOLIS—Flynn Properties Inc. in a joint enterprise with Värde Associates announced that it has acquired an 80 per cent joint venture interest in 89 find-assistance and extended-remain hotels in a $1.1 billion implied whole organization value transaction from affiliate marketers of Highgate and Cerberus Capital Management, L.P.
With properties positioned during the United States, the portfolio contains 58 Marriott-branded inns, 24 Hilton-branded lodges, 4 Radisson-branded motels, two IHG-branded lodges, and a person Choice-branded resort, which will undergo money advancements in excess of time. Affiliate marketers of Highgate and Cerberus will retain a 20 % desire in the investment, and Highgate will continue to handle the homes on behalf of the joint undertaking. This is the 2nd joint undertaking between Flynn Properties and Värde Associates past 12 months the companions acquired a portfolio of 20 Marriott- and Hilton-branded find-company lodges from Apple Hospitality.
“We are enthusiastic to announce the addition of these accommodations to our portfolio,” reported Greg Flynn, founder, chairman, and CEO of Flynn Qualities. “This acquisition is portion of a broader business tactic of Flynn Houses to improve its constrained services resort footprint, which has proved to be a single of the finest-undertaking sectors in the field. We are also energized by the caliber of properties included in this offer, as the portfolio’s models are world hospitality icons recognised for internet hosting some of the world’s most loyal vacationers for business enterprise and leisure although providing exceedingly robust visitor loyalty plans, which we consider will be a important resource of visitor revenue and retention. Flynn Attributes and Värde Companions are thrilled to execute this transaction with Highgate and Cerberus, and to get the job done heading ahead with the several significant franchisors and associates throughout the portfolio.”
This acquisition will deliver Flynn Properties’ constrained-service resort portfolio to 115 properties. Flynn Houses is a division of San Francisco-based Flynn Holdings, which has two principal firms: true estate and dining establishments. Flynn Properties’ prior hotel investments contain constrained-service and prolonged-remain motels as nicely as five luxurious resorts: Esperanza and the Chileno Bay Vacation resort, the two located in Los Cabos, Mexico the Carneros Resort & Spa and Solage, the two found in the Napa Valley and the Hotel Madeline in Telluride, Colorado. Its professional investments consist of tech-oriented office environment properties on the West Coastline, which have totaled in excess of a few million square ft. Its affiliate, Flynn Cafe Group LP, has 20 foods assistance organizations in the United States, owning and running 2,400 places to eat in 44 states producing $4 billion in profits and using 73,000 persons.
“The resort sector proceeds to fortify amidst a advanced macro backdrop, demonstrating its ability to present buyers the potential for developing, inflation-guarded income flows. These attributes recovered immediately from the pandemic and have been carrying out effectively, indicative of the top quality of their models and the continued need for confined-assistance and prolonged-continue to be resorts,” stated Tim Mooney, worldwide head of real estate at Värde Associates. “As this cycle proceeds to evolve, we think there will be additional possibilities to spend selectively in higher-top quality assets that are properly-positioned to capitalize on the robust demand from customers for company and leisure vacation. We are happy to husband or wife for the next time with Flynn Attributes to acquire this interest in a different portfolio of qualities in attractive destinations with powerful current market provide/need dynamics.”
Deutsche Financial institution Securities Inc. served as economical advisor to Flynn Homes and Värde Associates on this transaction.