Brookfield Fund Sale is Largest US Hotel Deal in 18 Months
Two investors paid a reported $835 million for the 1,000-room Florida resort.
The Diplomat Beach Resort in Hollywood, Fla., is a 1,000-room lush resort located on South Florida’s ocean front. Two institutional investors have announced they have purchased the complex, and although they did not reveal the price, the Wall Street Journal reported it was under contract for $835 million last week.
The buyers, a joint venture between non-US offered real estate funds managed by Credit Suisse Asset Management and real estate funds managed by Trinity Fund Advisors LLC, did note, however, that the acquisition is one of the largest hotel deals in the US since August 2021.
The seller was a Brookfield private real estate fund.
Brookfield has completed some $90 million in renovations at the property and according to the WSJ, the new owners plan to make additional changes.
The new owners also signed a management agreement with Hilton to oversee the resort’s operations under the Curio Collection by Hilton flag.
Convention Hotel Market
Part of The Diplomat’s allure is its 200,000 square feet of meeting and event space. Credit Suisse Asset Management and Trinity Real Estate Investments say they have their eye on a rebound in the US convention hotel market, as well as the strength of Florida’s local economy. “We see the convention hotel segment as an attractive investment proposition with the Florida economy continuing to experience strong economic growth and favorable demographics,” Robert Rackind, Global Head of Real Estate for Credit Suisse Asset Management, said in prepared remarks.
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.