MINNEAPOLIS AND SAN FRANCISCO — Flynn Properties Inc. and Värde Partners have acquired an 80 percent joint venture interest in 89 select-service and extended-stay hotels in a $1.1 billion deal. Affiliates of Highgate and Cerberus Capital Management LP were the sellers. The portfolio comprises 58 Marriott-branded hotels, 24 Hilton-branded properties, four Radisson-branded assets, two IHG-branded hotels and one Choice-branded property. All of the assets will undergo capital improvements over time.
Affiliates of Highgate and Cerberus will retain a 20 percent interest in the investment, and Highgate will continue to manage the properties on behalf of the joint venture. Deutsche Bank Securities Inc. served as financial advisor to Flynn and Värde on the transaction. Flynn Properties, a division of San Francisco-based Flynn Holdings, now owns 115 select-service and extended-stay hotels. Minneapolis-based Värde currently manages over $13 billion in assets worldwide.