A joint venture among funds managed by Trinity Fund Advisors LLC, an affiliate of Trinity Real Estate Investments LLC, and funds managed by Oaktree Capital Management, L.P. today announced the acquisition of the 530-key Hyatt Regency Indian Wells Resort & Spa, located in the Greater Palm Springs area.
Trinity and Oaktree intend to undertake a multi-million-dollar capital improvement plan to reposition the resort, and Hyatt Corporation will continue to manage Hyatt Regency Indian Wells Resort & Spa under a long-term management agreement. This represents the sixth investment in seven premier assets across six markets totaling over 4,500 keys that Trinity and Oaktree have made together.
“Hyatt Regency Indian Wells Resort & Spa is an exceptional property with significant embedded value that we plan to unlock with our transformational repositioning plan,” said Sean Hehir, Managing Partner, President, and CEO of Trinity. “We are excited to once again partner with Oaktree to own and improve one of California’s premier resort destinations, as well as further our relationship with Hyatt, one of the world’s leading hotel companies. We believe that this acquisition is reflective of our ability to source and close highly attractive hospitality investments.”
First opened in 1989, the 36-acre Hyatt Regency Indian Wells Resort & Spa has benefited from multiple improvements over time and currently features 88,000 square feet of indoor and outdoor event space, four food and beverage outlets, nine outdoor pools and a fitness and spa complex. Most recently, the award-winning luxury resort completed a multi-million-dollar renovation in 2020. The enhancement project included upgrades to select guestrooms and meeting spaces as well as the addition of a waterpark with dueling water slides and a lazy river, which has proven to drive strong transient demand, particularly during the summer season. Trinity and Oaktree’s capital improvement plan contemplates the complete renovation of all guest rooms, a reimagined food and beverage program, and enhanced amenities and guest offerings.
“We are excited to acquire Hyatt Regency Indian Wells Resort & Spa, underpinning our belief in the growth of the greater Palm Springs hospitality market and the tailwinds of strong aging and wealth demographics in the Coachella Valley,” said John Brady, Managing Director and Head of the Global Real Estate group at Oaktree. “We look forward to expanding our relationship with Hyatt and partnering on yet another deal with the Trinity team.”
Located within a two-hour drive from Los Angeles, Orange County, and San Diego, the Greater Palm Springs area is a well-established leisure market with multiple demand generators. The area hosts several popular events that attract travelers from all over the world, including the Coachella Valley Music and Arts Festival, the Stagecoach Festival and the BNP Paribas Open, which are hosted less than two miles away from Hyatt Regency Indian Wells Resort & Spa. Additionally, five airlines began new direct flights to Palm Springs International Airport during the COVID-19 pandemic, including inaugural service from Southwest Airlines, offering direct flights from eight destinations. Given its proximity to the airport and major event venues, as well as its numerous amenities and planned improvements, the partnership believes that Hyatt Regency Indian Wells Resort & Spa is positioned to capture increased group and leisure travel.
“Hyatt Regency Indian Wells has been an iconic destination resort for more than 30 years, and we look forward to continue managing this world-class property under a long-term management agreement for many more years to come,” said Pete Sears, Americas group president, Hyatt. “We look forward to working with Trinity and Oaktree as they significantly reinvest in the property to further elevate the guest experience and help us realize the hotel’s exciting next chapter.”
Photos Source: Hyatt Regency Indian Wells Resort & Spa, www.hotelnewsresource.com