The Largest Seniors Housing Conglomerate

The seniors housing industry has been subject to much scrutiny in recent years. With more facilities opening every year, it is evident that everyone wants to have a part in the seniors housing space.

With over 1,100 communities, Brookdale Senior Living is the largest senior healthcare provider in the country. They serve seniors with assisted living, independent living, and memory care. However, with such large scope comes bigger challenges as well. If anything were to ever happen to Brookdale, it could affect the entire industry.


Trouble at Brookdale Senior Living

Over the years, Brookdale has been able to successfully buy & sell facilities and merge & develop new product. This has been one of the reasons they have grown so large. However, we are beginning to see that not everything is going to plan for the seniors housing titan.

Brookdale acquires various management styles, operating styles, regional market variations, and resident expectations with each new facility. Because of this, conflict arises.

Management is heavily affected by variations in corporate culture. In turn, this affects service to the residents. Because some seniors housing investments come from different sectors and markets, an operational approach at one facility may not work for another. Brookdale’s management is unable to establish the same operational method for all facilities, resulting in a struggle to unify the 1,100 communities.

Looking for Outside Help

Currently, Brookdale needs extra help. Management is looking for new ownership/investment candidates to maximize shareholder returns.

Ventas and Blackstone, two seniors housing industry veterans had the strength and equity to make a deal with Brookdale. Unfortunately, it never worked out. Brookdale then turned to searching for international bids. Zhonghong Zhuoye Group, a Beijing-based conglomerate, is looking to own Brookdale.

This international solution has raised a lot of criticism for Brookdale, with many arguing that foreign influence is a step in the wrong direction. Critics fear the outcome of an international organization controlling Brookdale. Presently, players in the industry and those who are preparing for their next investments await Brookdale’s conclusion.


Navigate the Industry with The Stahler Group

Brookdale’s situation continues to grow more complex. Because they are the largest senior healthcare provider, whatever happens to Brookdale will affect the rest of the industry.

The Stahler Group plans to keep the seniors housing community as informed as possible as more developments unfold from the Brookdale transaction. The team will report on how it may change the industry, and what you can do to keep your investment stable.