Oaktree Capital Management and Trinity Real Estate Investments have bought a Hyatt Regency in the greater Palm Springs area for $137.5 million, The Real Deal has learned.
Hyatt sold the 530-key Hyatt Regency Indian Wells to funds managed by Oaktree and an affiliate of Trinity, according to an announcement last week that did not disclose the purchase price. Property records filed with Riverside County show the deal closed for $137.5 million, or about $259,433 per key, on April 1. Hyatt did not respond to a request for comment.
Trinity and Oaktree are planning to renovate the property at 44600 Indian Wells Lane under a “multi-million-dollar” plan to upgrade food and beverage and all guest rooms, the companies said in a statement. Hyatt will continue to manage the property under a long-term agreement.
Hyatt bought the property in 2018 for around $120 million, financial records show. The company then renovated the hotel in 2020, spending $21 million on a waterpark and upgrading guest rooms and meeting spaces.
Given the hotel is close to Palm Springs International Airport, along with the Coachella and Stagecoach festivals, the firms are expecting “to capture increased group and leisure travel,” Oaktree and Trinity said in a statement.
The Palm Springs hotel isn’t the first time Oaktree and Trinity have partnered on a purchase. In 2017, the firms formed a venture to spend up to $3 billion on hotels in Hawaii, California, Mexico and Japan.
In December, the venture purchased the 305-key W Hollywood hotel for $197 million from Maryland-based hotel REIT Host Hotels & Resorts. Host Hotels sold that property for a loss — it bought the hotel for $220 million in 2017.