Trinity Investments and funds managed by Oaktree Capital Management on Monday announced the formation of a joint venture to invest up to US$3 billion in hotels in Trinity’s core markets: Hawaii, California, Mexico and Japan. The joint venture will seek to invest alongside global institutional and high net worth partners.
Trinity President and CEO Sean Hehir talked to HOTELS on Monday, elaborating that its home base of Hawaii will be a major point of focus for acquisition across all asset classes, adding that the new JV will also look for resorts and business-class hotels in California.
Hehir is very bullish on Cabo San Lucas, Mexico, calling it one of a handful of global “brands” when it comes to beach destination. He said Trinity is about to announce a resort and city center acquisition in Mexico, and that the partnership will also target the underserved select-service sector there.
In Japan, Trinity is about a month away from announcing a joint venture with Okura to develop select-service hotels under the Nikko brand name, according to Hehir.
This strategic partnership follows Trinity and Oaktree’s recent acquisition of the long-term leasehold interest in The Westin Maui Resort & Spa from an affiliate of Starwood Hotels & Resorts. On a selective basis, the joint venture may also pursue hotel investments in select gateway markets in the United States. Trinity will oversee the joint venture and be responsible for its acquisitions and asset management.
“Expanding our relationship with Oaktree provides us with additional capital to increase our scale in our core markets,” Hehir said. “Oaktree is a savvy investor who recognizes the success of our platform and shares our bullish outlook on these markets.”