JV acquires The Diplomat Beach Resort

A joint venture between non-U.S. offered real estate funds managed by Credit Suisse Asset Management and real estate funds managed by Trinity Fund Advisors LLC, an affiliate of full-service private real estate investment firm Trinity Real Estate Investments LLC, have acquired The Diplomat Beach Resort in Hollywood, FL, from a Brookfield private real estate fund.

According to a report in The Wall Street Journal, the property was sold for $835 million.

The new owners also signed a management agreement with Hilton to oversee the resort’s operations under the Curio Collection by Hilton flag.

The Diplomat Beach Resort is the only oceanfront resort in South Florida with more than 1,000 rooms and 200,000 sq. ft. of meeting and event space. The property recently completed a $90-million renovation, and amenities include:

  • Nearly 10 oceanfront acres on the Atlantic Ocean featuring jet ski, ocean kayak and paddleboard rentals
  • Eight restaurants and bars
  • Two beachfront pools with a cascading waterfall and a 14,000-sq.-ft. spa and wellness centerClose

“I am delighted that we have been able to diversify our international real estate portfolio with such an iconic property,” said Robert Rackind, global head of real estate, Credit Suisse Asset Management. “We see the convention hotel segment as an attractive investment proposition with the Florida economy continuing to experience strong economic growth and favorable demographics.”

Sean Hehir, managing partner/president/CEO, Trinity, added, “The Diplomat Beach Resort is an ideal addition to our portfolio and an opportunity to leverage Trinity’s in-house asset development and management capabilities to offer an unparalleled luxury experience in an optimal location. We plan to take the resort to even greater heights and make it the go-to destination in South Florida.”

Danny Hughes, EVP/president, Americas, Hilton, added, “We are delighted to work with Credit Suisse Asset Management and Trinity and proud to be selected as the management company for this iconic beachfront resort in South Florida. We are excited about the future of this hotel and look forward to elevating the guest experience so The Diplomat remains the resort of choice for today’s global travelers.”

Credit Suisse Asset Management and Trinity Real Estate Investments are seeking to capitalize on the rebound in the U.S. convention hotel market and on the strength of Florida’s local economy. The state’s bounce in tourism has been rapid and dramatic, putting it on track to return to pre-pandemic levels.

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.

Gibson, Dunn & Crutcher LLP; Eckert Seamans Cherin & Mellott LLC; and Akerman LLP and Greenberg Traurig LLP acted as legal counsel to the purchaser consortium in connection with the transaction.