Trinity Investments and funds managed by Oaktree Capital Management are set to form a joint venture (JV) to acquire new hotels in Trinity’s core markets with an investment of $3bn.
The JV, which will be overseen by Trinity, will seek to invest in Hawaii, California, Mexico and Japan, alongside global institutional and high net worth partners in these markets.
Trinity president and CEO Sean Hehir said: “Expanding our relationship with Oaktree provides us with additional capital to increase our scale in our core markets.
“Oaktree is a savvy investor who recognises the success of our platform and shares our bullish outlook on these markets. We look forward to investing with Oaktree during these opportunistic times.”
The latest partnership follows recent acquisition of the long-term leasehold interest in The Westin Maui Resort & Spa by Trinity and Oaktree from an affiliate of Starwood Hotels & Resorts.
Further, the JV may also pursue hotel investments in select gateway markets in the US.
Trinity will be responsible for the JV's acquisitions as well as asset management.
Oaktree Capital Management managing director Ben Bianchi said: “This partnership aligns with Oaktree’s strategy to invest with experienced partners in key strategic markets.
"We are confident that Trinity’s investment acumen and market knowledge coupled with our expertise will result in a highly attractive portfolio of hotel investments.”