Oaktree Capital Management and Trinity Investments have formed a $3 billion joint venture to invest in hotel product. The joint venture will purchase high-quality, value-added hotels in Hawaii, California, Mexico and Japan. Trinity has a strong history in these markets. The investors will work alongside global institutional and high net worth partners in each of the markets.
“Following on our recent joint acquisition of The Westin Maui Resort & Spa from an affiliate of Starwood Hotels & Resorts, the strategic partnership with Oaktree seemed to make perfect sense, as their investment philosophies and global vision align well with our platform,” Sean Hehir, president and CEO of Trinity Investments, tells GlobeSt.com. “Given our deep institutional knowledge and longstanding local relationships in Hawaii, Mexico and Japan, we are able to leverage great success in these markets and are confident we will continue to do so.”
Trinity will oversee the joint venture and will make acquisition decisions, with Oaktree managing the funds. The firm will lean on its past experience investing in these markets to expand its opportunities. “With considerable expertise covering the full spectrum of property investment, development and value-enhancing asset management, Trinity generates unique and opportunistic real estate investments in world-class markets,” says Hehir. “The firm's pursuits span an array of geographic locations and asset types but share the commonality of being predicated upon best-in-class local relationships and teams of professionals for sourcing, execution and exiting.” He adds that renovations and acquisition funding will be determined on a case-by-case basis.
The hotel market took a pause last year, especially from capital markets groups, with concern about oversupply. When asked if this aggressive joint venture was a sign that the market was rebounding, Hehir wouldn't make any broad claims, saying, “We continue to see opportunity in the markets that we deeply invest in and believe this trend will continue.”
Oaktree Capital Management and Trinity Investments have formed a $3 billion joint venture to invest in hotel product. The joint venture will purchase high-quality, value-added hotels in Hawaii, California, Mexico and Japan. Trinity has a strong history in these markets. The investors will work alongside global institutional and high net worth partners in each of the markets.
“Following on our recent joint acquisition of The Westin Maui Resort & Spa from an affiliate of Starwood Hotels & Resorts, the strategic partnership with Oaktree seemed to make perfect sense, as their investment philosophies and global vision align well with our platform,” Sean Hehir, president and CEO of Trinity Investments, tells GlobeSt.com. “Given our deep institutional knowledge and longstanding local relationships in Hawaii, Mexico and Japan, we are able to leverage great success in these markets and are confident we will continue to do so.”
Trinity will oversee the joint venture and will make acquisition decisions, with Oaktree managing the funds. The firm will lean on its past experience investing in these markets to expand its opportunities. “With considerable expertise covering the full spectrum of property investment, development and value-enhancing asset management, Trinity generates unique and opportunistic real estate investments in world-class markets,” says Hehir. “The firm's pursuits span an array of geographic locations and asset types but share the commonality of being predicated upon best-in-class local relationships and teams of professionals for sourcing, execution and exiting.” He adds that renovations and acquisition funding will be determined on a case-by-case basis.
The hotel market took a pause last year, especially from capital markets groups, with concern about oversupply. When asked if this aggressive joint venture was a sign that the market was rebounding, Hehir wouldn't make any broad claims, saying, “We continue to see opportunity in the markets that we deeply invest in and believe this trend will continue.”
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