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
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    From left: Ryan Johnson and Jeff Berens, co-founders of Culdesac, in front of a rendering of Culdesac Tempe (Culdesac, iStock)
    Startup that wants to build car-free cities raises $30M Series A
    Startup that wants to build car-free cities raises $30M Series A
    From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
    Keith Powers, Democratic District 4 representative on the New York City Council, in front of 45 East 45th Street (Getty Images, The Roosevelt Hotel, iStock/Illustration by Steven Dilakian for The Real Deal)
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    Local lawmakers aim to landmark shuttered Roosevelt Hotel
    Former WeWork CEO Adam Neumann (Getty Images, iStock, Yard 8 Miami, Stacks on Main, Trulia, Power Design Inc., Inkwell Decatur, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
    Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
    Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
    A photo illustration of 51-53 East 73rd St, 300 De Witt Ave, 137 Bayard Street and 3044 Coney Island Ave (LoopNet, Rosewood Realty Group/Illustration by Steven Dilakian for The Real Deal)
    Ten mid-market investment sales to start your day
    Ten mid-market investment sales to start your day
    M&T CFO Darren King (The Org and iStock)
    Real estate lender’s bleak outlook and earnings decline perplexes analysts
    Real estate lender’s bleak outlook and earnings decline perplexes analysts
    Grocery store signs lease for 14,000 square feet at 725-733 Amsterdam (Wikipedia, Google Maps, iStock)
    Key Food to open 14K sf shop on the UWS
    Key Food to open 14K sf shop on the UWS
    arrow_forward_ios

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

    Loading...