Credit Suisse and Trinity acquire beachside hotel in Florida

07 February 2023 10:14

CH Business Hub USAZurich CCGreater ZurichSwiss Forum Los Angeles

Zurich/Honolulu - Credit Suisse and Trinity have together purchased the Diplomat Beach Resort in Hollywood, Florida. In a joint project, they intend to develop the oceanfront hotel into the leading destination in South Florida. This is one of the largest hotel takeovers in the USA for a long time.

A joint venture between a real estate fund administered by the Zurich-based Credit Suisse Asset Management and another real estate fund administered by Trinity Fund Advisors LLC, a subsidiary of the private real estate investment firm Trinity Real Estate Investments LLC, which is based in Honolulu in the US State of Hawaii, has agreed a deal to acquire the Diplomat Beach Resort hotel from the private real estate fund Brookfield. Together, the partners intend to develop the resort into South Florida’s most popular destination for international guests, further details of which can be found in a press release.

The hotel takeover is one of the biggest deals of this kind in the USA since August 2021, the press release explains. According to an article published in the “Wall Street Journal”, the sale price amounts to 835 million US dollars. The new owners have concluded a management contract with the US hotel chain Hilton that will see the resort operated as part of the Curio Collection by Hilton brand.

The Diplomat Beach Resort is South Florida’s only oceanfront hotel complex. It boasts more than 1,000 rooms, two pools, eight restaurants and bars, in addition to almost 20,000 square meters of space for events and conferences. The property, which is located just 30 minutes from Miami International Airport, was recently renovated at a cost of 90 million US dollars.

The buyers see the conference hotel segment as an attractive investment proposition given Florida’s strong economy and rapid recovery from the coronavirus pandemic. “I am delighted that we have been able to diversify our international real estate portfolio with such a unique property”, comments Robert Rackind, Global Head of Real Estate at Credit Suisse Asset Management, in the press release. ko

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