Flynn Properties, Värde Partners partner to buy portfolio

Flynn Properties—owner of commercial real estate, resorts and select-service hotel properties—has formed a joint venture with alternative investment firm Värde Partners to acquire 20 select service hotels in a $211 million deal with Apple Hospitality REIT.
 
The newly acquired properties—a portfolio of 11 Marriott- and nine Hilton-branded properties located throughout the Sunbelt, Northeast, Pacific Northwest and Midwest—will undergo capital improvements over time. 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 CEO 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.”
 
“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.”
 
This acquisition will bring Flynn Properties’ select service hotel portfolio to 26 properties, complementing the six existing Marriott-branded hotels it currently owns. Flynn Properties is a division of San Francisco-based Flynn Holdings, which has two principal businesses: real estate and restaurants. Flynn Properties’ prior hotel investments include six Marriott Courtyards as well as four resorts: Esperanza in Los Cabos, Mexico; the Carneros Resort & Spa and Solage in Napa, Calif.; and the Hotel Madeline in Telluride, Colo. The company’s affiliate, Flynn Restaurant Group, owns and operates 2,400 restaurants in 44 states generating $3.6 billion in sales.
 
Värde recently completed the sale of eight European luxury hotels operating under The Dedica Anthology brand in September 2020.