Driftwood Capital has refinanced the Scottsdale McCormick Ranch, the “first true conference center resort in the country” in Scottsdale, AZ. MetLife Investment Management, the institutional asset management business of MetLife Inc, provided the refinancing loan totaling $115 million.
“Driftwood Capital and its affiliates are excited to replace the in-place debt with favorable terms as we near completion of the $40 million transformational renovation and revitalization of the Scottsdale McCormick Ranch Resort,” said Carlos Rodriguez Sr., chairman/CEO, Driftwood Capital. “We are renewing the hotel’s beauty to position it as a leading property in the area. Historically, the resort has been a prominent choice for large conventions, and we expect it to capitalize on leisure demand in the Scottsdale market. At the same time, it continues to lead as a group and convention destination as well as a lifestyle resort. The resort has a strong foundation and exceptional location, yet it lacked certain components required to compete effectively in the luxury hospitality sector. With the value-add repositioning and renovation, the resort will be positioned to regain its title as one of the preeminent resorts in this market.”
Driftwood’s renovation of the property includes a complete redesign of all guestrooms, expanded food and beverage offerings, the introduction of 12 five-bedroom villas and the addition of a full-service luxury spa. Upon completion, the resort will be part of the Curio soft brand within the Hilton Worldwide portfolio of properties.
Glenn Wasserman, CFO, Driftwood Capital, emphasized the strategic significance of this refinancing and renovation by adding that “the Scottsdale market has seen significant growth with upper-priced hotel RevPAR increasing 25% over 2019 levels. With our extensive multimillion-dollar renovation, we expect the Scottsdale McCormick Ranch Resort to be one of the top competing resorts in the area. We project the resort to leverage this repositioning and association with Hilton’s soft-brand Curio Collection, along with its optimal location within McCormick Ranch, to capture unrealized premium leisure demand.”
Driftwood Hospitality Management (DHM), an affiliate of Driftwood Capital, will assume management responsibilities.
