Flynn Properties and Värde Partners have acquired an 80% joint venture interest in 89 select service and extended stay hotels in a deal whose implied total enterprise value is $1.1 billion. The sellers are affiliates of Highgate and Cerberus Capital Management, L.P. 

The portfolio, which is spread across the US, consists of 58 Marriott-branded hotels, 24 Hilton-branded hotels, 4 Radisson-branded hotels, 2 IHG-branded hotels and 1 Choice-branded hotel, which will undergo capital improvements over time. Affiliates of Highgate and Cerberus will retain a 20% interest in the investment, and Highgate will continue to manage the properties on behalf of the joint venture. This is the second joint venture between Flynn Properties and Värde Partners; last year the partners acquired a portfolio of 20 Marriott- and Hilton-branded select service hotels from Apple Hospitality.

Erika Morphy

 

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