MIAMI, Florida—Driftwood Capital introduced the profitable closing of a $1.2 billion portfolio consolidation involving 18 Hilton, Marriott, and Margaritaville-branded inns throughout 10 states. The 4,203-key portfolio represents among the most strategically situated property in Driftwood’s nationwide platform, all of that are operated straight by the agency.
This transaction marks a serious milestone in Driftwood’s technique to create scalable hospitality portfolios, designed to maximise worth by way of operational management, model alignment, and portfolio-level synergies. Every asset has both been newly constructed or comprehensively renovated lately.
“This portfolio brings collectively among the highest high quality property we personal and function, making a uniquely cohesive funding alternative for our companions,” stated Carlos Rodriguez Sr., chairman and CEO of Driftwood Capital. “We’ve deliberately assembled this specific portfolio of property to mirror power in markets, efficiency, and long-term fundamentals.”
Financing for the transaction was led by Wells Fargo, performing as agent for a ~$330 million securitized senior mortgage. ACORE Capital, a number one institutional investor with ~$19 billion in property underneath administration, supplied $85 million in most well-liked fairness.
“We see this portfolio as a blueprint for the way we intend to take a position and function within the subsequent cycle,” stated Carlos Rodriguez Jr., president and COO of Driftwood Capital. “It displays our deal with constructing high-quality, strategically situated resort portfolios—identical to we did with our current Area Coast Fund, which represented over $800 million in property. These two transactions executed inside months of one another characterize over $2 billion in recapitalizations of property made to enhance the returns of our traders. The long-term upside we see in these two collections is substantial. Our thesis going ahead is to proceed maximizing worth whereas strengthening fundamentals throughout the Driftwood platform.”
Portfolio Highlights Embrace:
- Margaritaville Lake Resort Lake of the Ozarks — 520-key flagship lakefront vacation spot.
- Marriott San Diego Mission Valley — 353-key resort on the West Coast.
- Hilton Dallas/Southlake City Sq. — 250-key resort in a Dallas suburb.
- Cover by Hilton West Palm Seashore Downtown — 150-key life-style resort in Florida’s “Wall Road South.”
- Resort Vesper, Houston — 131-key boutique resort repositioned for development in Houston.
The portfolio spans a various set of high-growth markets, together with California, Texas, Florida, North Carolina, Utah, and New York, and is backed by practically $370 million in current renovations and new growth.
