MIAMI, Florida—Driftwood Capital announced the successful closing of a $1.2 billion portfolio consolidation involving 18 Hilton, Marriott, and Margaritaville-branded hotels across 10 states. The 4,203-key portfolio represents some of the most strategically located assets in Driftwood’s national platform, all of which are operated directly by the firm.
This transaction marks a major milestone in Driftwood’s strategy to create scalable hospitality portfolios, designed to maximize value through operational control, brand alignment, and portfolio-level synergies. Each asset has either been newly built or comprehensively renovated in recent years.
“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 for the transaction was led by Wells Fargo, acting as agent for a ~$330 million securitized senior loan. ACORE Capital, a leading institutional investor with ~$19 billion in assets under management, provided $85 million in preferred equity.
“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.”
Portfolio Highlights Include:
- Margaritaville Lake Resort Lake of the Ozarks — 520-key flagship lakefront destination.
- Marriott San Diego Mission Valley — 353-key hotel on the West Coast.
- Hilton Dallas/Southlake Town Square — 250-key hotel in a Dallas suburb.
- Canopy by Hilton West Palm Beach Downtown — 150-key lifestyle hotel in Florida’s “Wall Street South.”
- Hotel Vesper, Houston — 131-key boutique hotel repositioned for growth in Houston.
The portfolio spans a diverse set of high-growth markets, including California, Texas, Florida, North Carolina, Utah, and New York, and is backed by nearly $370 million in recent renovations and new development.
