JLL’s Hotels & Hospitality group has arranged $575 million in financing for the 1,000-room Diplomat Beach Resort in Hollywood, FL.
JLL worked on behalf of the borrower, a joint venture between real estate funds managed by Trinity Investments 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 provided by Ohana Real Estate Investors and Canada Pension Plan Investment Board (CPPIB).
JLL was also involved in the 2023 sale of the resort, 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, 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 & Resorts under the Curio Collection by Hilton brand. Extensively renovated and repositioned through a comprehensive $90-million capital plan in 2018, the resort consists of a twin-spired, 36-story tower containing the hotel rooms, a 15,000-square-foot spa and six restaurants and bars, plus multiple pools and waterfalls. It also features more than 200,000 sq. ft. of integrated meeting and events space. Additionally, the property is situated on 10 acres of Atlantic Ocean beachfront offering kayaking, paddleboarding and jet ski rentals.
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 said.
The Ohana Real Estate Investors team was led by Franco Famularo, president/chief investments officer, 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.
