Brookfield weighs $1.5B hotel portfolio sale

Firm eyeing deal for extended-stay chain WoodSpring Suites: report

National /
Nov.November 17, 2021 03:46 PM

Bruce Flatt, chief executive officer, Brookfield Asset Management (Brookfield Asset Management, WoodSpring Suites, iStock)

Brookfield Asset Management is weighing the sale of a portfolio of extended-stay hotels for up to $1.5 billion, Bloomberg reported, citing people familiar with the matter.

The firm is reportedly working with an adviser in regards to a potential sale of its portfolio of WoodSpring Suites, which provides affordable short and medium-term hotel stays without many services or amenities.

The average length of stay is about 15 days, according to Bloomberg, significantly longer than the three-to-five day stays for other hotels, according to S&P Global Ratings analysts. In turn, the hotels are able to generate high margins.

In April, Brookfield negotiated a deal with Hospitality Investors Trust that gave the Toronto-based firm control of 100 hotels as part of a Chapter 11 filing. Brookfield was the largest investor in the trust.

The hotels are franchised by Choice Hotels.

News of the potential deal comes months after another extended-stay portfolio traded hands for a big price. Blackstone Group and Starwood Capital Group acquired the hotel chain for about $6 billion, at $19.50 per share. Both companies were previous investors in the hotel chain and the bid was later upped to $20.50 per share, a value of about $6.3 billion.

Brookfield recently took its struggling real estate arm private. In an August letter to investors, CEO Bruce Flatt said the asset manager hopes to make $25 billion from its real estate portfolio.

The company paid $6.5 billion to buy out the outstanding shares of Brookfield Property Partners, pivoting from public trading to the private markets. In 2020, the firm reported net losses of $2 billion as the pandemic devastated the firm’s mall properties.

There were 281 WoodSpring Suites hotels as of June 30, 2020, according to an SEC filing.

[Bloomberg] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    695 E Main Street in Stamford (Wikimedia)
    Northeast Capital JV grabs Stamford office campus for $235M
    Northeast Capital JV grabs Stamford office campus for $235M
    U.S. shopping mall values have struggled in recent years before valuations tanked in the wake of the pandemic amid an e-commerce boom.
    US mall values plummeted by one-third in 4 years
    US mall values plummeted by one-third in 4 years
    Year of the ‘Revenge Traveler’
    Year of the ‘Revenge Traveler’
    Year of the ‘Revenge Traveler’
    CoStar CEO Andy Florance
    CoStar comes home to play
    CoStar comes home to play
    Big Silicon Valley firm grabs 34K sf in Soho
    Big Silicon Valley firm grabs 34K sf in Soho
    Big Silicon Valley firm grabs 34K sf in Soho
    Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
    Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
    Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
    Stephen Ross and Charles Kushner (Getty)
    Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
    Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
    Last call? Cipriani facing possible foreclosure after mortgage default
    Last call? Cipriani facing possible foreclosure after mortgage default
    Last call? Cipriani facing possible foreclosure after mortgage default
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...