Major expansion of Diplomat Hotel in Hollywood gets initial OK

Brookfield is looking to sell the 1,000-key resort, which could expand by 500 rooms

TRD MIAMI /
May.May 07, 2019 05:34 PM
Diplomat Beach Resort Hollywood and a map of the proposed land usage

Diplomat Beach Resort Hollywood and a map of the proposed land usage (Credit: Agoda)

Plans for a major expansion of the Diplomat Hotel in Hollywood advanced Tuesday as the Broward County Commission gave preliminary approval to a land-use proposal for the development site.

But the proposal is far from finalized. And exactly who would expand the Diplomat is unclear because the hotel is for sale.

Brookfield Properties, which owns the Diplomat Hotel through its Thayer Lodging Group subsidiary, is behind the expansion plan and the land-use proposal. The county commission’s action on Tuesday advanced a plan to build a second hotel building with 500 rooms across the street from the 1,000-room Diplomat at 3555 South Ocean Drive in Hollywood. The building would be part of a mixed-use development along the Intracoastal Waterway that also would add 150,000 square feet of convention and meeting space and 350 residential units.

Wilson C. Atkinson, an attorney with law firm Tripp Scott who represents Brookfield, said the second hotel building would replace commercial space between two existing parking garages on the west side of Ocean Drive, across from the Diplomat’s current location, and it would “mirror” the architectural style of the Diplomat, including “the opening at the top of that tower where air goes through it,” Atkinson said.

County commissioners passed for state review a change to the approved land use for the 19-acre Diplomat property between the ocean and the Intracoastal Waterway, from “medium-high residential” and “commerce” to “activity center.”

Brookfield spokesperson Bruce Wiles told county commissioners that the hotel is doing well. “We’re bringing in large conventions that previously hadn’t been to Broward County … We’re producing record revenues for the county and Hollywood.”

But Brookfield has been trying to sell the Diplomat, too, so by advancing the land-use proposal, the company also is offering a potential opportunity for a new owner to expand the hotel, one of South Florida’s largest.

Two real estate firms – Newmark Frank Knight and Hodges Ward Elliott – have been hired to find a buyer for the Diplomat, which has been listed for sale since January. Bloomberg reported at the time that the oceanfront hotel could trade for $1 billion, or $1 million per key.

Thayer Lodging acquired the Diplomat property for $460 million in 2014, and soon after, changed the Diplomat’s brand affiliation from Westin to Curio, part of Hilton system. Wiles said Brookfield has invested $85 million in the Diplomat.

After it goes to the state, the Broward County Planning Council and the commission would have the final say.

The planning council in January said it was concerned about “its negative impact to emergency shelter capacities” for people on Hollywood’s barrier island under a hurricane threat. Some commissioners also expressed concern Tuesday about the impact of an expanded Diplomat Hotel on nearby emergency shelter capacity, and they suggested that failure to resolve the issue could block final approval of the land-use proposal if it advances to a second review by the county commission.


Related Articles

arrow_forward_ios
Brookfield’s Brian Kingston and 14100 Northwest 60th Avenue (Google Maps)

Brookfield snags Miami Lakes warehouse for $22M

Brookfield snags Miami Lakes warehouse for $22M
A rendering of AKAI Estates and Alex Yokanna

Luxury single-family home community in Southwest Ranches launches sales

Luxury single-family home community in Southwest Ranches launches sales
Bottom row: Nick Sharp, Felix Bendersky and Jaime Sturgis; top row: Mayor Dale Holness and Mayor Carlos Gimenez (Instagram/threefoldcafe, F&B, Linkedin, Office of the Mayor, Twitter)

Restaurateurs to protest restrictions in Miami-Dade. In Broward, it’s a different story

Restaurateurs to protest restrictions in Miami-Dade. In Broward, it’s a different story
Housing Trust Group CEO and President Matt Rieger and renderings of the project (City of Hollywood)

Hollywood approves multifamily affordable housing project

Hollywood approves multifamily affordable housing project
Diane Von Furstenberg, Brookfield Properties Bruce Flatt, and the DVF store in the Shops at Merrick Park (Getty, Google Maps)

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park
The Emerald Hills golf course and Ari Pearl

Developers propose Nicklaus redesign of Emerald Hills golf course, luxury residences

Developers propose Nicklaus redesign of Emerald Hills golf course, luxury residences
A rendering of the project at 2717 Van Buren Street

French developer plans to build a cluster of rentals in Hollywood

French developer plans to build a cluster of rentals in Hollywood
From left: Jeff Soffer, Brian Kingston of Brookfield Property Partners, Brett Mufson and Diplomat Beach Resort Hollywood

Jeffrey Soffer’s $800M Diplomat resort purchase called off

Jeffrey Soffer’s $800M Diplomat resort purchase called off
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...