HOLLYWOOD, Fla. - JLL's Hotels & Hospitality group has successfully arranged a substantial financing package for the Diplomat Beach Resort, a prominent beachfront property in Hollywood, Florida. The $575 million loan, obtained through a joint venture between Trinity Investments and UBS Asset Management funds, is set to support the resort's continued growth and operations.
The financing, which includes a five-year, floating-rate loan, was facilitated by JLL on behalf of the borrower. Major financial institutions Citi and Deutsche Bank provided the primary mortgage, while additional mezzanine financing came from Ohana Real Estate Investors and the Canadian Pension Plan Investment Board (CPPIB).
Kevin Davis, Americas CEO at JLL, expressed confidence in the resort's potential for heightened performance, particularly in light of a planned renovation and the robust recovery of South Florida's lodging market. The Diplomat Beach Resort, which boasts 1,000 guest rooms and over 200,000 square feet of meeting and event space, is managed by Hilton Hotels and Resorts under the Curio Collection by Hilton brand.
The property, which underwent a $90 million renovation in 2018, is strategically located between Fort Lauderdale/Hollywood International Airport and Miami International Airport, enhancing its accessibility to major U.S. and international markets. Its amenities include a spa, multiple dining options, pools, and a range of water sports activities along its 10-acre beachfront.
This financing follows the 2023 sale of the resort, marking the third largest single-asset hotel sale in U.S. history at the time. The State of the Florida Lodging Industry report by JLL highlighted the state's lodging markets outperforming the U.S. average in revenue per available room (RevPAR) in 2023.
The transaction underscores JLL's position as a leader in hotel and hospitality real estate advisory, with a track record of $83 billion in completed transactions over the past five years. The information for this report is based on a press release statement.
In other recent news, Jones Lang LaSalle (JLL) reported a robust performance in Q1 2024, with a 12% increase in resilient revenues and a 6% rise in Capital Markets revenue, despite a global decline in commercial real estate investments. Still, the company also faced a decline in industrial leasing activity and lower revenue in its JLL Technologies segment. These are among the recent developments for the company.
JLL also announced the appointment of Susan Gore, a veteran with extensive background in accounting, auditing, and finance, to its Board of Directors. Gore's expertise is expected to bolster JLL's global operations and contribute to its growth strategy. The company also marked the departure of Ann Marie Petach from the Board, who did not seek re-election.
Furthermore, JLL expanded its data center services through the acquisition of SKAE Power Solutions, a provider of technical and project management services for data centers. The acquisition is set to enhance JLL's technical service delivery for critical data center assets, a strategic move in line with the shift in data center design and investment.
In the realm of analyst notes, Keefe, Bruyette & Woods adjusted the price target for JLL shares from $190.00 to $200.00, maintaining its Market Perform rating. The firm forecasts a revenue growth of approximately 4% for JLL in 2024, with projections for 2025 exceeding 10%.
Despite the increased stock price target, the firm suggests that investors may need to wait for clearer signs of recovery before a more definitive performance trend for JLL's shares can be established.
InvestingPro Insights
Amidst the successful arrangement of a substantial financing package for the Diplomat Beach Resort, JLL (Jones Lang LaSalle Incorporated) showcases its financial health and strategic market positioning. According to InvestingPro data, JLL has a market capitalization of approximately $9.74 billion and a robust revenue stream with last twelve months as of Q1 2024 revenue reaching nearly $21.17 billion, a testament to the company's expansive operations.
InvestingPro Tips highlight JLL's prudent financial management, with the company aggressively buying back shares, which could signal management's confidence in the company's value. Additionally, JLL has demonstrated a commitment to shareholder returns, having raised its dividend for 9 consecutive years. Such actions underscore the firm's stability and appeal to investors seeking consistent income.
With a price hovering near its 52-week high and a fair value estimation by analysts at $220, slightly below the InvestingPro fair value of $222.06, JLL appears to be trading at a valuation that reflects its solid market presence and future growth prospects. The company's financial acumen is further evidenced by its P/E ratio, which has adjusted to 27.45 in the last twelve months as of Q1 2024.
For readers interested in deeper financial analysis and additional insights, InvestingPro offers more tips on JLL, including its expected net income growth this year and its position as a prominent player in the Real Estate Management & Development industry.
To explore these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With the aforementioned tips and 12 additional tips available on InvestingPro, investors can gain a comprehensive understanding of JLL's market position and financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.