The Diplomat is an award-winning, 1,000-key beachfront resort
in Hollywood, Florida
HOLLYWOOD, Fla., June 17,
2024 /PRNewswire/ -- JLL's Hotels &
Hospitality group announced today that it has arranged $575 million in financing for the Diplomat Beach
Resort, an award-winning beachfront resort with 1,000 guest rooms
in Hollywood, Florida.
JLL worked on behalf of the borrower, a joint venture between
real estate funds managed by Trinity Investments ("Trinity") and
funds managed by UBS Asset Management's Real Estate & Private
Markets Multi-Managers business, to secure the five-year,
floating-rate loan through mortgage lenders, Citi and Deutsche
Bank. The interest-only loan also included mezzanine financing
provide by Ohana Real Estate Investors and Canadian Pension Plan
Investment Board (CPPIB).
JLL was also involved in the 2023 sale of the resort to
Trinity and funds advised by UBS Asset Management, which
represented the third largest single-asset hotel sale ever in the
U.S. at the time. The South
Florida lodging industry saw a tremendous recovery
post-Covid making it one of the best-performing hotel markets in
the country, benefitting significantly from an increase in leisure
travel, recovery of group demand and the significant demographic
shift into South Florida.
According to JLL's State of the Florida Lodging Industry report,
revenue per available room (RevPAR) in each of the state's top 10
lodging markets beat the U.S. average in 2023.
The Diplomat Beach Resort is currently managed by Hilton Hotels
and Resorts under the Curio Collection by Hilton brand. Extensively
renovated and repositioned through a comprehensive $90 million dollar capital plan in 2018, the
Diplomat Beach Resort is a world-class beachfront meeting and
events-focused resort. The resort features 1,000 guest rooms and
suites and over 200,000 square feet of integrated meeting and
events space. The property consists of a twin-spired, 36-story
tower containing the hotel rooms, a 15,000-square-foot spa, six
restaurants and bars plus multiple pools and cascading waterfalls.
Additionally, the property is situated on 10 acres of Atlantic
Ocean beachfront offering kayaking, paddleboarding and jet ski
rentals.
The Diplomat Beach Resort is ideally located between the two
most significant airports in South
Florida, Fort
Lauderdale/Hollywood
International Airport (10 minutes) and Miami International Airport (30 minutes),
affording the resort unparalleled access to guests from major
markets throughout the U.S., Latin
America and Europe. The
resort is known for its extensive offerings and multiple
award-winning recognitions and accolades, including being awarded
2019 Best Family Resort by Travvy Awards, One of the Top Resorts in
Florida by Conde Nast Traveler in
2018 and is the recipient of the AAA Four Diamonds Award®.
The JLL Hotels & Hospitality team representing the borrower
was led by Americas CEO Kevin Davis
and Managing Director Mike Huth.
"We are pleased to have represented Trinity in the financing of
this iconic Florida beach resort,
which is poised for outsized performance growth following a planned
renovation, coupled with the ongoing strength of the South Florida lodging market," Davis
added.
The Ohana Real Estate Investors team was led by President &
Chief Investments Officer Franco
Famularo and Managing Director Eddie
Yu, partnering with CPPIB to structure the mezzanine
loan.
"The Ohana credit team was grateful for the opportunity to
refinance this irreplaceable property for Trinity," said
Famularo.
JLL's Hotels & Hospitality group has completed more
transactions than any other hotels and hospitality real estate
advisor over the last five years, totaling $83 billion worldwide. The group's 350-strong
global team in over 20 countries also closed more than 7,350
advisory, valuation and asset management assignments. Our hotel
valuation, brokerage, asset management and consultancy services
have helped more hotel investors, owners and operators achieve high
returns on their assets than any other real estate advisor in the
world.
For more news, videos and research resources on JLL, please
visit our newsroom.
About Trinity Investments
Trinity is a private real
estate investment firm with a 28-year history of specializing in
value-add opportunities. Based in Honolulu, Hawaii, with offices in Los Angeles and London, Trinity focuses on unique real estate
investments in world-class markets. As of April 2024, Trinity has invested more than U.S.
$9.8 billion in the United States, Mexico, Europe, and Japan by leveraging its deep institutional
knowledge and longstanding local relationships. For additional
information, please visit Trinity's website at
trinityinvestments.com. For updates on Trinity's investment
activity, follow Trinity on LinkedIn.
About UBS
UBS provides financial advice and solutions
to wealthy, institutional and corporate clients worldwide, as well
as private clients in Switzerland.
UBS's strategy is centered on our leading global wealth management
business and our premier universal bank in Switzerland, enhanced by Asset Management and
the Investment Bank. The bank focuses on businesses that have a
strong competitive position in their targeted markets, are capital
efficient, and have an attractive long-term structural growth or
profitability outlook.
About Ohana Real Estate Investors
Ohana Real Estate
Investors is a vertically integrated real estate investment firm
with expertise in the hospitality and residential sectors, focusing
on urban and resort markets throughout North America. Founded in 2009, Ohana invests
across the capital structure through dedicated equity and credit
strategies and currently manages approximately $3 billion on behalf of a global investor base,
including university endowments, foundations, and family offices.
For more information, please visit ohanare.com.
About JLL
For over 200 years, JLL (NYSE: JLL), a
leading global commercial real estate and investment management
company, has helped clients buy, build, occupy, manage and invest
in a variety of commercial, industrial, hotel, residential and
retail properties. A Fortune 500® company with annual revenue of
$20.8 billion and operations in over
80 countries around the world, our more than 108,000 employees
bring the power of a global platform combined with local expertise.
Driven by our purpose to shape the future of real estate for a
better world, we help our clients, people and communities SEE A
BRIGHTER WAY®. JLL is the brand name, and a registered trademark,
of Jones Lang LaSalle Incorporated. For further information, visit
jll.com.
Contact: Kristen Murphy, JLL Director, Public
Relations
Phone: +1 617 543 4873
Email: Kristen.Murphy@jll.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/jlls-hotels--hospitality-group-arranges-575m-financing-for-the-diplomat-beach-resort-302174127.html
SOURCE JLL