Driftwood Capital has closed a $1.2 billion portfolio consolidation involving 18 Hilton, Marriott and Margaritaville-branded hotels across 10 states. The 4,203-key portfolio represents some of the most well-performing assets in Driftwood’s national platform, all of which are operated directly by the firm.
This transaction marks a major milestone in Driftwood’s strategy to create scalable hospitality portfolios, designed to maximize value through operational control, brand alignment and portfolio-level synergies, according to the company. Each asset has either been newly built or comprehensively renovated in recent years, and together they reflect a portfolio with strong fundamentals—positioned for durable performance through current market volatility.
“This portfolio brings together some of the highest quality assets we own and operate, creating a uniquely cohesive investment opportunity for our partners,” said Carlos Rodriguez Sr., chairman/CEO, Driftwood Capital. “We’ve intentionally assembled this particular portfolio of assets to reflect strength in markets, performance and long-term fundamentals.”
Financing for the transaction was led by Wells Fargo, acting as agent for an approximately $330-million securitized senior loan. ACORE Capital provided $85 million in preferred equity.
“We see this portfolio as a blueprint for how we intend to invest and operate in the next cycle,” said Carlos Rodriguez Jr., president/COO, Driftwood Capital. “It reflects our focus on building high-quality, strategically located hotel portfolios—just like we did with our recent Space Coast Fund, which represented more than $800 million in assets. These two transactions executed within months of each other represent more than $2 billion in recapitalizations of assets made to improve the returns of our investors. The long-term upside we see in these two collections is substantial. Our thesis going forward is to continue maximizing value while strengthening fundamentals across the Driftwood platform.”
Portfolio highlights include:
- Margaritaville Lake Resort Lake of the Ozarks – 520-key flagship lakefront destination
- Marriott San Diego Mission Valley – 353-key, top-performing hotel on the West Coast
- Hilton Dallas/Southlake Town Square – 250-key hotel in a Dallas suburb
- Canopy by Hilton West Palm Beach Downtown – 150-key lifestyle hotel in Florida’s “Wall Street South”
- Hotel Vesper, Houston – 131-key boutique hotel repositioned for growth in Houston
The portfolio spans a set of “high-growth” markets including California, Texas, Florida, North Carolina, Utah and New York, and is backed by nearly $370 million in recent renovations and new development.
