A joint venture between Flynn Properties (Flynn) and Värde Partners has acquired 20 select service hotels, 11 Marriott and nine Hilton branded properties, from Apple Hospitality REIT for $211 million.
The newly acquired properties are located throughout the Sunbelt, Northeast, Pacific Northwest and Midwest.
Flynn Properties will serve as the managing member of the joint venture, charged with day-to-day asset management of the portfolio and execution of the business plan.
“We are excited to announce the addition of these Marriott- and Hilton-branded hotels to our portfolio of properties,” said Greg Flynn, Founder, Chairman and Chief Executive Officer of Flynn Properties.
“This acquisition is part of a broader business strategy by Flynn Properties to increase its select service hotel footprint, which proved to be one of the best performing sectors in the industry. We are also excited by the caliber of properties included in this deal, as both Marriott and Hilton are global hospitality icons known for hosting some of the world’s most loyal travelers for business and leisure while offering exceedingly robust guest loyalty programs, which we believe will be a key source of guest revenue and retention,” he added.
“Värde is pleased to partner with an experienced sponsor in Flynn Properties to acquire a portfolio of well-positioned hospitality properties in attractive locations with compelling market supply/demand dynamics. These properties have fared well through the pandemic, demonstrating the healthy demand for select service hotels and the strength of their brands,” said Francisco Milone, Head of Real Estate Special Situations at Värde Partners.
“The hotel sector has experienced an unprecedented shock, with extreme levels of cash-flow disruption driving a significant demand for capital. As the sector begins to recover from the pandemic, we believe there will be opportunities to invest selectively in high quality assets that are well positioned to capitalize on the return of business and leisure travel.”