When Trinity Investments acquired East Miami in October 2021, the group was making what it saw as a bet on a market poised for structural growth. And now it seems that bet has paid off.
Hit rewind to the pandemic era: Miami had remained open, attracting remote workers, new residents, corporates, high net worth individuals and a wave of capital that helped transform the Brickell district into one of the most dynamic mixed-use neighborhoods in the U.S.
“Brickell turned into this bustling community with residential, office, retail etc,” noted Sean Hehir, president and CEO at Trinity Investments. “People came to Miami during Covid because they realized they could work remotely and ended up staying. The whole restaurant scene and the energy of Miami changed as a result. Miami has become a magnet for people. From Palm Beach down, the entire South Florida corridor has benefited.”
Now Brickell has seen an evolution into a genuine live-work-play hub anchored by Brickell City Centre, which houses the East Miami. And just four years later, Trinity and its joint-venture partner Certares have exited the 352-key lifestyle property, selling it to funds affiliated with Blackstone Real Estate. The sale, which industry sources estimate to be valued at close to $300 million, marks one of the largest single-asset hotel transactions in South Florida this year and demonstrates investor conviction in the region’s long-term fundamentals.
How They Got Here
When Trinity and Certares acquired the property in 2021 for roughly $174 million, most other bidders reportedly planned to terminate Swire’s management contract and rebrand the property under a U.S. lifestyle flag. Trinity went in the opposite direction.
“We took the view that if we pride ourselves on effective asset management, we should be able to work with any brand or management company,” Hehir said. “We have a lot of respect for Swire. They developed a beautiful, differentiated hotel and we were focused on keeping them on as manager.”
But they also saw areas of opportunity. The Trinity team reduced the property’s reliance on online travel agencies, negotiated direct contracts with corporate accounts based in Brickell’s many Fortune 500 offices and introduced a resort fee to boost ancillary revenue.
Within the 352 keys, the asset also features 79 one, two and three-bedroom residences. Under previous ownership, these had been leased on longer-term contracts. Trinity converted them into short-term suite inventory, allowing for dynamic pricing and higher yields, a move that proved especially lucrative amid the influx of professionals relocating to Miami.
To read the rest of this article, visit our sister site Hospitality Investor.