Flynn Properties and Värde Partners have partnered to buy a portfolio of 20 select service US hotels from Apple Hospitality REIT in a $211m (€178m) deal.
Flynn Properties said the 11 Marriott and nine Hilton properties, located throughout the Sunbelt, Northeast, Pacific Northwest and Midwest, will undergo capital improvements over time.
The acquisition lifts Flynn Properties’ select service hotel portfolio to 26 properties, complementing the six existing Marriott-branded hotels it currently owns.
Greg Flynn, founder, chairman and CEO of Flynn Properties, said the 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 calibre 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 travellers for business and leisure while offering exceedingly robust guest loyalty programs, which we believe will be a key source of guest revenue and retention.”
Francisco Milone, head of real estate special situations at Värde Partners, said: “These properties have fared well through the pandemic, demonstrating the healthy demand for select service hotels and the strength of their brands.
“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.”
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