Private Equity Firm Brookfield to Pay $3.8 Billion for Watermark Lodging Trust
Skift Take
The Brookfield deal shows that investment interest in hotel portfolios remains strong. Analysts at Baird said that Xenia Hotels has a portfolio with similar characteristics to Watermark's.

Daily Lodging Report
Skift’s Daily Lodging Report is a subscription-required, email-only newsletter read by anyone and everyone in the hotel investor, owner, and operator space, including CEOs of some of the industry’s top brands. It covers North America and Asia Pacific with two separate regional editions.Here are some excerpts of what the Daily Lodging Report informed its readers during the past week. If you’re not a subscriber, you should be. Sign up now, here.
Sunday, May 8Watermark Lodging Trust announced they signed a deal with private real estate funds managed by Brookfield Asset Management that will see Brookfield acquire Watermark in a $3.8 billion all-cash deal. Brookfield will pay $6.768 per Class A share and $6.699 per Class T share. The transaction includes the assumption of debt and the preferred equity. Watermark’s portfolio consists of 25 properties with more than 8,100 rooms located in the drive-to-leisure destinations and urban cities in 14 states. Brookfield expects to close the transaction in the fourth quarter of this year.
According to Lodging Econometrics’s Construction Pipeline Trend Report for Q1 2022, the Latin America hotel construction pipeline stands at 563 projects, or 92,356 rooms. Mexico leads Latin America’s construction pipeline with 216 projects. Next is Brazil with 90 projects or 15,115 rooms, Peru with 32 projects or 972 rooms, Dominican Republic with 22 projects or 4,853 rooms, and Columbia with 18 projects/2,782 rooms. Cities in Latin America with the largest pipelines including Mexico City, Guadalajara, and Cancun. In 2023, LE analysts are forecasting 108 projects/16,587 rooms to open in Latin America.
Orient Express signed a partnership agreement with Arsenale S.p.A. to open the second Orient Express hotel in Italy at the Palazzo Dona Giovannelli in Venice. The Orient Exp