Driftwood Capital has closed its latest fund, Driftwood Florida Space Coast Portfolio, LP, which focuses on the acquisition and development of existing and soon-to-break-ground hotel assets in Florida’s “Space Coast.”
The $330 million fund has four large-scale beachfront assets under brands including Marriott, Hilton and IHG. Once the Westin Cocoa Beach resort opens its doors, the fund’s portfolio will represent around 11% of all the guestrooms in the Space Coast market and 62% of the area’s beachfront hotel inventory, Driftwood said in a release.
“Since 2013, Driftwood has had a meaningful presence in Florida’s Space Coast,” said Carlos J. Rodriguez, Sr., chairman and CEO of Driftwood Capital. “When we first entered this market over 10 years ago, we recognized the untapped potential for this region to become a hub that melds business, innovation and leisure tourism. Today, as we continue to invest as a partner for growth in the Space Coast, the area continues to draw travelers and new residents as it emerges into a significant coastal destination with numerous demand drivers across a variety of sectors.
The fund’s existing portfolio consists of the following properties:
- Westin Cocoa Beach Resort (expected to feature 502 guestrooms including 69 suites, Cocoa Beach)
- Hilton Cocoa Beach (295 guestrooms, Cocoa Beach)
- Element by Westin Melbourne (130 guestrooms, Melbourne)
- Crowne Plaza Melbourne (290 guestrooms, Melbourne)
Anticipating more demand and growth in Space Coast, the fund’s portfolio is expected to include more than 1,200 rooms, 166,000 square feet of meeting space and 21 dining venues on 35 beachfront acres.
Space Coast is located in an economically resilient area and benefits from a range of demand generators across several sectors. A perennial destination for business and leisure travelers, the region’s proximity to Orlando and the activities from the space industry attract millions of visitors every year. Driftwood has been identifying the high barriers to entry in Space Coast and working around them over the past 10 years, which has helped it to strengthen its position as a major owner of properties in the region.
Demand will continue to increase in Space Coast in the next few years. With 111 launches scheduled for this year, according to Florida Lt. Governor Jeanette Nuñez, last year’s record of 72 launches is expected to be surpassed by the end of this year. With increased launches from both NASA as well as private commercial entities, Driftwood’s investment projection for Space Coast’s growth has proven true. More than 300 rockets are likely to launch in 2028, drawing increased tourism and business travel.
Earlier this year, Driftwood announced that its hotel development pipeline crossed $1 billion in projected value. The pipeline portfolio includes projects valued at around $500 million, which are either under construction or will break ground this year.
