Brookfield Properties sells Diplomat Beach Resort for $835M

A joint venture between real estate funds managed by Credit Suisse Asset Management and real estate funds managed by Trinity Fund Advisors—an affiliate of private real estate investment firm Trinity Real Estate Investments—have acquired The Diplomat Beach Resort in Hollywood, Fla. The new owners signed a management agreement with Hilton to oversee the 1,000-room resort’s operations under the Curio Collection by Hilton flag.

According to the Miami Herald, the property sold for $835 million, the third largest single-asset hotel sale ever in U.S. history, according to JLL. JLL's Hotels & Hospitality Group represented the seller, Brookfield Properties, in the transaction. Morris, Manning & Martin served as legal counsel to Brookfield in this deal. 

Renovated and repositioned through a $90 million capital plan in 2018, the Diplomat Beach Resort has 1,000 traditional guestrooms and suites and 200,000 square feet of integrated meeting and events space. The property consists of a twin-spired, 33-story tower housing the hotel rooms, a 14,000-square-foot spa, eight restaurants and bars as well as multiple pools and waterfalls. Additionally, the property is situated on 10 acres of Atlantic Ocean beachfront with kayaking, paddleboarding and jet ski rentals.  

The JLL Hotels & Hospitality team representing the seller was led by Senior Managing Directors Jeffrey Davis and Gregory Rumpel, Americas CEO Kevin Davis and Global CEO Gilda Perez-Alvarado.

"Over the last few months of 2022, U.S. group demand reached 93 percent of 2019 levels and we predict even further acceleration through 2023, driven predominantly by upscale and upper upscale hotels," Davis said in a statement. "The sale of the Diplomat was the third largest single-asset hotel sale ever in the U.S and it's truly a win-win for both the seller and the buyers."

The Diplomat Beach Resort is located between Fort Lauderdale/Hollywood International Airport and Miami International Airport, giving the resort access to guests from major markets throughout the U.S., Latin America and Europe. 

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.