Trinity-Certares sell East Miami to Blackstone

MIAMI —
Funds managed by Trinity Investments and Certares Real Estate Management are
selling the 352-key East Miami in Florida to funds affiliated with Blackstone
Real Estate for an undisclosed amount. The deal concludes their first hotel
collaboration and builds on what has been a fruitful partnership for the
companies.

While the
sale price wasn’t disclosed, a previous Bloomberg report stated that the JV was
working with JLL to explore the sale of the hotel, which could value the
property at more than $325 million.

Trinity and Certares acquired the hotel
in 2021 from Hong Kong-based Swire Properties for $174 million. Swire Hotels
continued to manage and operate the hotel that opened in 2016 and features 89 serviced apartments. It anchors the $1.1 billion Brickell City Centre in Miami.

Trinity and
Certares focused on operational improvements and driving revenue growth,
resulting in a more than 60% increase in net operating income during their
first full year of ownership, according to today’s press release about the deal.

Honolulu-based
Trinity recently sold a majority stake of the 374-key Hyatt Regency Greenwich
in Connecticut to New York City-based Certares for an undisclosed amount, while
retaining a 25% ownership stake. Sean Hehir, managing partner, president, and
CEO of Trinity, said a few weeks ago that he would love to continue partnering
with Certares. 

“We are
constantly talking to Certares about acquisition opportunities. They are one of
our favorite joint venture partners,” he said. “We see the world in a very
similar way and have several successful investments together. So, we’d love to
do a lot more with them.”

“We bought this luxury asset in 2021 and immediately set about implementing our business strategy of optimizing performance and focused capital improvements to drive outsized results for our Investors,” Nolan Hecht, senior managing director and head of real estate at Certares, said on his LinkedIn page. “As our first realization in Certares Real Estate Fund 1, this transaction is symbolic of Certares’ ability to source fantastic hotel real estate, in growing submarkets, and through hands-on ownership generate strong top-line growth and bottom-line performance… Sean Hehir and I met 31 years ago, alphabetically assigned to seats at a class in the Cornell Peter and Stephanie Nolan School of Hotel Administration and magic seems to happen when we partner together.”

Since
launching its real estate platform in early 2021, Certares has acquired 16
hotels and over 3,700 keys across the country, including The Ray Hotel in
Delray Beach, Florida, and the Hilton Boston Back Bay.

Scott
Trebilco, senior managing director at Blackstone Real Estate, said in a news release: “The
acquisition of this luxury hotel located in one of the most dynamic areas of
Miami reflects our strong conviction in travel and hospitality. The Brickell
neighborhood is experiencing a rapid transformation with strong employment and
population growth, as well as exciting leisure attractions and entertainment
events, creating a compelling backdrop for the property.”