The Generation Companies Recapitalizes Hotel Portfolio

October 13, 2016

Willkie represents The Generation Companies in the recapitalization and roll-up of a 23-hotel portfolio. 

On October 5, Willkie client The Generation Companies consummated the $215 million recapitalization and roll-up of four portfolios comprising 23 extended-stay and select-service hotels, consolidating them into one portfolio with its new joint venture partner, a fund controlled by StepStone Real Estate Group. The transaction was structured as a merger of the new joint venture with four existing joint ventures comprising multiple investors, and was also financed with a $145.5 million mortgage loan from Blackstone. Each of the hotels is subject to a franchise agreement with Hilton, Choice Hotels or IHG.

The Generation Companies has a 50-year heritage of property management. They focus on creating value via progressive lodging development and customer service-oriented operations by partnering with premier extended-stay brands and franchisors. The Generation portfolio is primarily located in the Southeast, with 21 hotels in Florida, Georgia, North Carolina and Virginia, as well as two hotels in Texas and Tennessee.

The Willkie deal team advising on the transaction was led by partner David Drewes and included partners Henry Cohn and Danielle Scalzo, and associates Carly Glover Saviano, Cindy Yellen, Jennifer Coffey, Melissa Fischetti, Jennifer DiNicola and Jacob Moss.