Varde Partners has formed a joint venture with US commercial property, resorts and hotels owner Flynn Properties to buy 20 hotels, in a $211 million deal with Apple Hospitality REIT.
The hotels, which include 11 Marriott and nine Hilton branded locations, are located throughout the US’s Sunbelt, Northeast, Pacific Northwest and Midwest. The assets will receive capital improvements over time and Flynn Properties will undertake day-to-day asset management of the portfolio and execution of the business plan.
“These properties have fared well through the pandemic, demonstrating the healthy demand for select service hotels and the strength of their brands,” said Värde Partners’ head of real estate special situations Francisco Milone.
“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 capitalise on the return of business and leisure travel.”