Lodging specialist Trinity Investments LLC has formed a joint venture with funds managed by Oaktree Capital Management LP that will invest up to $3 billion in hotel properties in Trinity’s core markets: Hawaii, California, Mexico and Japan. The JV will seek to invest alongside global institutional and high net worth partners in these markets.
Trinity, headquartered in Honolulu, and Los Angeles-based Oaktree recently partnered on the acquisition of the the long-term leasehold interest in The Westin Maui Resort & Spa from an affiliate of Starwood Hotels & Resorts. The deal, announced in April, was valued at $317 million, according to Real Capital Analytics data. Trinity has made about $600 million of investments in Hawaiian lodging properties since last fall.
Oaktree’s hotel portfolio is valued at about $2.1 billion, mainly through JVs with other firms. Managing director Ben Bianchi says his company’s partnership with Trinity “aligns with Oaktree’s strategy to invest with experienced partners in key strategic markets.”
The new JV between Trinity and Oaktree may also make hotel investments in other US gateway markets. Trinity will oversee the JV and will 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,” says Sean Hehir, president and CEO of Trinity. “Oaktree is a savvy investor who recognizes the success of our platform and shares our bullish outlook on these markets. We look forward to investing with Oaktree during these opportunistic times.”