Private real estate funds managed by Brookfield Asset Management Inc. have agreed to buy Watermark Lodging Trust, whose properties include the San Jose Marriott and the Fairmont Sonoma Mission Inn & Spa, Bloomberg News has reported.

The all-cash acquisition of Watermark was valued at $3.8 billion, including debt, according to a May 6 statement by Brookfield. Also among the lodging company’s 25 properties are the Marriott Sawgrass Golf Resort & Spa in Ponte Vedra Beach, Florida, the Ritz-Carlton Key Biscayne in Miami and the Ritz-Carlton Bacara in Santa Barbara, California, according to its website.

Carey Watermark 2, which later became Watermark, purchased the San Jose Marriott in 2016 for $154 million, and at the time 2 revealed plans for $5.8 million in capital expenditures and other costs related to the downtown San Jose hotel.

The high-rise hotel at 301 S. Market St. next to the San Jose McEnery Convention Center has 478 guest rooms and 28 suites, the Arcadia Steakhouse and Tank Bar, plus 21,000-square-feet of meeting rooms. It had been sold by CBRE Global Investors May 2013 for $85.3 million.

The Watermark/Brookield deal comes during what Brookfield said is “a global lodging recovery led by U.S. leisure travelers,” which has led hotel executives to predict a record summer even as corporate travel remains subdued.

“Hotels and resorts of this scale and quality are difficult to replicate,” Lowell Baron, chief investment officer in Brookfield’s Real Estate Group, said in the company statement. “This portfolio is well-positioned given its concentration [on] coastal destinations, gateway cities and the Sun Belt.”

Watermark, formed in April 2020 through the merger of nontraded REITs Carey Watermark Investors 2 Inc. and Carey Watermark Investors Inc. had a presence in 15 states. Its net investments in hotels totaled $2.8 billion as of Sept. 30, according to a filing with the U.S. Securities and Exchange Commission.