Brookfield's Thayer Lodging Group seeks $1B for Diplomat resort

Deep-pocketed investors, both international and domestic, may want to set their sights on Florida, where Thayer Lodging Group, a subsidiary of Toronto-based Brookfield Asset Management, reportedly is seeking a buyer for The Diplomat Beach Resort Hollywood, Curio Collection by Hilton, considered the largest resort in Broward County and the second-largest in South Florida after the Fontainebleau Miami Beach. 

According to Bloomberg, the asking price for the iconic 1,000-room hotel could be $1 billion, or $1 million per key.

Thayer Lodging Group has tapped Newmark Knight Frank and Hodges Ward Elliott to market the former Westin, which TLG acquired for $460 million in 2014 and rebranded as a Curio under the Hilton umbrella. The property completed a $100-million renovation in 2017.

Bloomberg noted Florida resorts are outpacing the U.S. market. According to STR, revenue per available room increased 4.2 percent at the state's resorts in the first 11 months of 2018, compared to 3.4 percent at all U.S. resorts.

In South Florida alone, Brookfield also owns the Hilton Fort Lauderdale Marina, the third-largest hotel in Broward County. Thayer paid $170.6 million, or about $290,000 per key, for the Hilton in June. It also recently acquired the PGA National Resort & Spa in Palm Beach Gardens for nearly $218 million. 

Just a few weeks ago, Brookfield—with more than $285 billion in assets under management—announced plans to acquire at least four of five Indian hotels owned by debt-ridden Hotel Leelaventure Ltd.—as well as a land parcel—for an estimated ₹4,500 crore. The deal would mark Brookfield’s entry into India’s hospitality sector