Driftwood Capital, through its lending fund, Driftwood Lending Partners (DLP), has provided $35 million in mezzanine financing for the refinancing of the Sheraton Dallas Hotel, Texas’ largest hotel with 1,841 keys and more than 230,000 sq. ft. of meeting space. The mezzanine loan is part of a broader refinancing by the borrower, a joint venture sponsored by Chartres Lodging Group.
The transaction includes the full replacement of a 2024 $270 million CMBS loan with a new $300 million senior loan originated by Goldman Sachs and JPMorgan Chase Bank. In tandem, DLP upsized its original $30 million mezzanine loan to $35 million. The two-year loan includes three, one-year extension options.
“This refinancing strengthens the borrower’s capital structure as group and business travel fuel demand in metro Dallas,” said Scott Melby, VP, capital markets, Driftwood Capital. “The hotel’s advantageous location, coupled with sustained commercial travel and a recovering convention segment, positions the Sheraton Dallas for strong operational performance and long-term value creation.”
The hotel features five onsite restaurants, 113 meeting rooms, and 1,100 parking spaces with a suite of full-service amenities.
Located in the City Center District of Dallas, the hotel is six miles from Dallas Love Field and approximately 17 miles from DFW International Airport. Dallas Area Rapid Transit’s Pearl/Arts District Station is located across the property.
