When Trinity Investments acquired EAST Miami in October 2021, the group was making what it saw as a bet on a market poised for structural growth. And now it seems that bet has paid off.
Hit rewind to the pandemic era: Miami had remained open, attracting remote workers, new residents, corporates, high net worth individuals and a wave of capital that helped transform the Brickell district into one of the most dynamic mixed-use neighbourhoods in the U.S.
“Brickell turned into this bustling community with residential, office, retail etc,” noted Sean Hehir, president & CEO at Trinity Investments. He added: “People came to Miami during Covid because they realised they could work remotely and ended up staying. The whole restaurant scene and the energy of Miami changed as a result. Miami has become a magnet for people. From Palm Beach down, the entire South Florida corridor has benefited.”
Now Brickell has seen an evolution into a genuine live-work-play hub anchored by Brickell City Centre, which houses the EAST Miami. And just four years later, Trinity and its joint-venture partner Certares have exited the 352-key lifestyle property, selling it to funds affiliated with Blackstone Real Estate. The sale, which industry sources estimate to be valued at close to $300 million, marks one of the largest single-asset hotel transactions in South Florida this year and demonstrates investor conviction in the region’s long-term fundamentals.
How they got here
When Trinity and Certares acquired the property in 2021 for roughly $174 million, most other bidders reportedly planned to terminate Swire’s management contract and rebrand the property under a U.S. lifestyle flag. Trinity went in the opposite direction.
“We took the view that if we pride ourselves on effective asset management, we should be able to work with any brand or management company,” Hehir said. “We have a lot of respect for Swire. They developed a beautiful, differentiated hotel and we were focused on keeping them on as manager.”
But they also saw areas of opportunity. The Trinity team reduced the property’s reliance on online travel agencies, negotiated direct contracts with corporate accounts based in Brickell’s many Fortune 500 offices and introduced a resort fee to boost ancillary revenue.
Within the 352 keys, the asset also features 79 one, two and three-bedroom residences. Under previous ownership these had been leased on longer-term contracts. Trinity converted them into short-term suite inventory, allowing for dynamic pricing and higher yields, a move that proved especially lucrative amid the influx of professionals relocating to Miami.
“This was a case of hands-on asset management, with no requirement for heavy capex investment. But we did refurnish certain spaces, changed restaurant concepts and focused on the middle of the P&L, optimising expenses and ratios,” Hehir said.
The results came quickly. According to Trinity, EAST Miami’s net operating income grew by more than 60 per cent in its first full year under their ownership.
The right partners
The success of the strategy, Hehir argues, rested on the quality of its counterparties. “It’s of paramount importance who your brand, manager, lender and joint-venture partner are,” he said. “There will always be unforeseen challenges, and you need partners you can work effectively with.”
Trinity’s hospitality-specialist asset-management team engaged closely with Swire on operations, while its longstanding relationship with Certares proved beneficial. Even Värde Partners which provided the debt for the 2021 acquisition proved flexible: as performance improved, the financing partner upsized the loan, allowing Trinity to return half of its equity without refinancing.
“We didn't really encounter major issues along the way, but I knew that if we did the people around the table would be able to figure it out together,” Hehir said.
A clean exit
And when it came time for Trinity to exit, JLL was appointed to run the sale process, which attracted strong interest from domestic and institutional buyers. Trinity ultimately selected Blackstone based on its track record and execution certainty.
“We chose Blackstone as a buyer as they are as good a counterparty as it gets. They do exactly what they say they’re going to do. And so the diligence, contract negotiation and closing all went smoothly. All the pieces came together.”
He added: “The offer from Blackstone was just very clean and executable. And we've transacted with them a lot before. We buy from them, we sell to them, we finance with them. I know they’re going to do incredibly well with the property.”
For Blackstone, the purchase fits a broader pattern of conviction bets in South Florida. The firm has made several high-profile acquisitions in the region over recent years, and insiders say the EAST Miami deal underscores continued belief in the area’s demographic and economic momentum.
“I think Blackstone is saying: we believe in South Florida and its continued growth,” Hehir said. “It’s a terrific endorsement for the asset, Swire and the market.”
Broader strategy
Trinity is now eyeing further growth in both U.S. and international high-barrier markets, including London where it recently opened an office as well as resort destinations across Florida, Texas, Hawaii, Arizona, southern California and Mexico.
“We like destination-oriented markets with a high barrier to entry,” Hehir says.
He adds: “The parts of Mexico I find very interesting the dollarized resort markets like Cabo, Puerto, Vallarta, Cancun, Riviera Maya. I think those markets are very interesting. We've have a number of opportunities that were underwriting and negotiating and we're excited about markets like Orlando, Nashville, Florida and Texas.”
Looking ahead, the firm plans to extend its expertise into adjacent asset classes such as serviced apartments and senior living.
For the wider industry, the sale to Blackstone sends a positive message at a time when U.S. hotel trading has been subdued. Trinity believes the tide is turning.
“I think you’re going to see a lot more activity,” Hehir says. “There’s renewed optimism in the market.”
In that sense, the sale of EAST Miami is more than a profitable exit. It’s a marker of confidence in both the South Florida market and the resilience of the wider U.S. hospitality investment landscape.