Driftwood Capital has completed a $1.2-billion portfolio consolidation across 18 hotels operated under the Hilton, Marriott and Margaritaville flags. The transaction brings together 4,203 rooms across 10 states and marks one of the largest structured hospitality consolidations by the vertically integrated firm to date.
The portfolio includes properties located in California, Texas, Florida, North Carolina, Utah and New York. Each asset is either recently built or has undergone renovation. According to Driftwood, the collection reflects the company’s strategy to scale its platform through operational control, brand alignment and performance-driven investment.
“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 and CEO of Driftwood Capital. “We’ve intentionally assembled this particular portfolio of assets to reflect strength in markets, performance and long-term fundamentals.”
Financing was led by Wells Fargo, which served as agent on a senior loan of approximately $330 million. ACORE Capital, with roughly $19 billion in assets under management, contributed $85 million in preferred equity. Driftwood says the transaction reflects the structure it plans to replicate for future growth.
“We see this portfolio as a blueprint for how we intend to invest and operate in the next cycle,” said Carlos Rodriguez Jr., president and COO of 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 over $800 million in assets. These two transactions executed within months of each other represent over $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.”
Included in the portfolio are Margaritaville Lake Resort Lake of the Ozarks with 520 rooms, Marriott San Diego Mission Valley with 353 rooms, Hilton Dallas/Southlake Town Square with 250 rooms, Canopy by Hilton West Palm Beach Downtown with 150 rooms and Hotel Vesper in Houston with 131 rooms.
The transaction adds scale to Driftwood’s national platform and follows a trend of portfolio-level investment among vertically integrated hotel owners. Driftwood operates the properties directly.
