The Diplomat Beach Resort Refinances $452M Mortgage With New Lenders

The Diplomat Beach Resort in Hollywood, Florida is nearing the completion of a $452M first-lien mortgage refinancing. The resort's owners, Trinity and Credit Suisse, are expected to close on the deal next week, as reported by Kroll Bond Rating Agency. The financing is co-originated by Citi Real Estate Funding and German American Capital Corp.

The debt will replace the existing $466M CMBS debt and $100M mezzanine debt assumed by the joint venture when they acquired the property from Brookfield Asset Management last February. The resort, which reopened in 2002 and underwent a $90M renovation between 2015 and 2018, is part of the Hilton Curio Collection. According to Kroll, the resort had a 70. 6% occupancy rate and an average daily rate of $324. 11 in the 12 months ending in April... resulting in a revenue per available room of $228. 73. This is higher than the Miami average RevPAR of $237. 25 in March, the highest in the country's top 25 markets, according to STR. As part of the renovation plan, the owners are expected to invest $36M to upgrade the property under the Signia by Hilton brand.

The upgrades, "which include enhancements to amenities and the repositioning of restaurants," "are set to be completed by February 2026." As per Bisnow... the joint venture aims to elevate the resort's offerings and attract more guests to the property.

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The Diplomat Beach Resort was first opened in 1958. The current buildings were constructed in 2002. The resort underwent a $90M renovation between 2015 and 2018. The resort has 1,000 keys. It has 128K SF of meeting space. It has eight food and beverage offerings.

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The resort's owners are expected to close next week on a $452M first-lien mortgage co-originated by Citi Real Estate Funding and German American Capital Corp., according to a Kroll Bond Rating Agency report . The debt covers the 1,000-key Diplomat Beach Resort at 3555 S. Ocean Drive, a property with twin 33-story towers, 128K SF of meeting space and eight food and beverage offerings. The resort first opened in 1958, but the current buildings were constructed in 2002 and underwent a $90M renovation between 2015 and 2018.