A joint venture between non-U.S. offered real estate funds managed by Credit Suisse Asset Management and real estate funds managed by Trinity Fund Advisors LLC, an affiliate of full-service private real estate investment firm Trinity Real Estate Investments LLC, has acquired The Diplomat Beach Resort in Hollywood, Florida from a Brookfield private real estate fund. The deal is one of the largest hotel acquisitions in the United States since August 2021. The new owners also announced the signing of a management agreement with Hilton to oversee the resort’s operations under the Curio Collection by Hilton flag.
The Diplomat Beach Resort is the only oceanfront resort in South Florida with over 1,000 rooms and 200,000 square feet of meeting and event space. The property completed an expansive $90 million renovation and boasts an extensive amenities list, including: nearly 10 oceanfront acres on the Atlantic Ocean featuring jet ski, ocean kayak and paddleboard rentals; eight restaurants and bars; two beachfront pools with a cascading waterfall and a 14,000-square-foot spa and wellness center and a four-diamond rating from AAA.
“I am delighted that we have been able to diversify our international real estate portfolio with such an iconic property,” said Robert Rackind, global head of real estate for Credit Suisse Asset Management. “We see the convention hotel segment as an attractive investment proposition with the Florida economy continuing to experience strong economic growth and favorable demographics.”
This purchase marks Trinity GP Fund I L.P.’s eighth investment since its final closing in June 2021, representing $2.1 billion in total transaction value.
“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, Managing Partner, President and CEO of Trinity, said. “We plan to take the resort to even greater heights and make it the go-to destination in South Florida.”
Gibson Dunn & Crutcher LLP, Eckert Seamans Cherin & Mellott LLC, Akerman LLP and Greenberg Traurig LLP acted as legal counsel to the purchaser consortium in connection with the transaction.
