JLL's Hotels & Hospitality group arranges $575M financing for The Diplomat Beach Resort
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.
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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
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