Flynn Properties' $1.1 Billion Hotel Play Signals Ambition in Franchising
Skift Take
A recent acquisition of 89 hotels will almost certainly go down as the largest U.S. hotel transaction in the second half of the year. Notably, the dealmaker Flynn Properties remains in a shopping mood.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Flynn Properties and Värde Partners said on November 21 they had created a joint venture that had acquired an 80 percent interest in 89 select service and extended stay hotels.
The deal had a $1.1 billion implied total enterprise value. It will probably be the largest hotel portfolio by valuation to change hands in the U.S. during the year's second half.Flynn Properties is a privately held company in San Francisco that's the largest restaurant franchisee in the U.S. and the owner of a handful of upscale resort hotels.Värde Partners is an investment firm based in Minneapolis.The sellers were affiliates of Highgate and Cerberus Capital Management.The portfolio included the following:
58 Marriott-branded hotels24 Hilton-branded hotels4 Radisson-branded hotels2 IHG-branded hotels1 Choice-branded hotelThe transaction was eye-catching because it appeared to be the precursor to a multi-year push by San Francisco-based Flynn Properties to invest in hotels, especially in select ser
