Brookfield Resort In South Florida Changes Hands In Record-Breaking Joint Venture Deal

A South Florida resort is expected to be sold to a pair of investors for $835M, marking one of the largest hotel acquisitions in the U.S. since August 2021.

Real estate funds managed by Credit Suisse Asset Management and Trinity Fund Advisors have formed a joint venture to buy The Diplomat Beach Resort in Hollywood, Florida, from Brookfield Asset Management, according to a news release.

The hotel will be branded under Hilton’s Curio Collection once it changes hands, per the release.

Courtesy of Credit Suisse Asset Management/Trinity Real Estate Investments
The Diplomat Beach Resort In Hollywood, Florida.

“The Diplomat Beach Resort is an ideal addition to our portfolio and an opportunity to leverage Trinity’s in-house asset development and management capabilities to offer an unparalleled luxury experience in an optimal location,” Sean Hehir, Trinity’s CEO, managing partner and president, said in a statement. “We plan to take the resort to even greater heights and make it the go-to destination in South Florida.”

A spokesperson behind the JV declined to comment on the price of the deal first reported by The Wall Street Journal via unnamed sources. The sale could close as soon as Friday, per the WSJ.

The purchase comes as the hotel industry rebounds from its pandemic-era depths. The price of properties in nearly every U.S. region increased by double digits year-over-year this quarter, with hotels in secondary markets like Miami vastly outperforming gateway cities on a yearly basis, according to HNR Hotel News.

The bounce-back could trigger an uptick of acquisitions, though yearly transaction volume is still dampened by the rising cost of hotel debt.

An affiliate of KSL Capital Partners bought five boutique hotels along California’s Central Coast in early February, and Hyatt Hotels Corp. just completed its acquisition of lifestyle hotels formerly owned by Dream Hotel Group.

The industry’s heightened performance, especially in the Florida market, was a major driver for the Diplomat deal, per the release. The JV plans to make additional upgrades to the property, which recently underwent a $90M renovation, the WSJ reported.

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