Driftwood Capital has secured $33 million in refinancing for the 200-key Sheraton Park City hotel in Park City, UT.
Berkadia South Florida’s Managing Directors Michael Weinberg and Scott Wadler, along with their team members Alec Fox and Edmund Aramayo, arranged the five-year, fixed-rate CMBS loan through Goldman Sachs Bank USA.
“The hotel, with its extensive meeting space compared to its nearby competitors, along with its close proximity to the mountains and historic main street, positions itself to continue to exceed our expectations,” said Carlos Rodriguez Jr., president/COO, Driftwood Capital. “The group segment remains the fastest-growing demand sector in hospitality, and the hotel is primed to leverage its more than 12,000 sq. ft. of meeting space. Moreover, travelers continue to show a strong desire for leisure and outdoor activities, particularly in distinctive markets offering top-notch features and amenities. This aligns with the trend of experiential travel, especially in destinations that provide a mix of indoor and outdoor experiences.”
“This marks the second successful refinancing the Driftwood, Berkadia and Goldman Sachs USA teams have accomplished together this year, following a $60.5-million refinance of Driftwood’s Margaritaville Lake of the Ozarks asset in January,” added Wadler. “In the case of the Sheraton Park City, Driftwood’s 30-year track record in the hospitality space guided its repositioning of the asset following their 2017 acquisition, which resulted in substantial increases in the property’s NOI and RevPAR.”
The Sheraton Park City hotel is located about eight miles from Olympic Park. The hotel was originally constructed for the 2002 Winter Olympics and is surrounded by 2,000 acres of skiable terrain.
“Driftwood Capital and its affiliates are thrilled to unlock value for investors through a new mortgage, which will replace existing debt with favorable terms,” explained David Steiner, managing director, capital markets, Driftwood Capital. “Park City has emerged as a global destination, supported by numerous demand generators that bolster robust hospitality fundamentals, particularly for upper-upscale properties like the Sheraton Park City hotel. The city’s formidable barriers to entry make it exceptionally challenging for new supply to enter the market, likely providing downside protection.”
The hotel features an indoor atrium pool with hot tub and sauna, game room, coffee shop and Timbers Restaurant & Bar with an outside covered patio and fire pits, as well as more than 12,000 sq. ft. of meetings and event space with indoor and outdoor options.
The closing comes on the heels of Driftwood’s recent announcement that its hotel development pipeline has exceeded $1 billion in projected value. Driftwood’s development portfolio includes $800 million in projects either under construction or scheduled to break ground in 2024.
