Latest news with #DriftwoodCapital
Yahoo
7 days ago
- Business
- Yahoo
Nashville to open its second Tempo by Hilton lifestyle hotel
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Dive Brief: A dual-branded Tempo by Hilton and Homewood Suites hotel will open in Nashville, Tennessee's East Bank district, commercial real estate investment and development firm Driftwood Capital, which delivered a preferred equity investment for the building, announced Monday in a release obtained by Hotel Dive. The 18-story, 300-room property will be built near Oracle's future $1.4 billion Nashville headquarters, which is currently under development near the city's Nissan Stadium. The hotel is expected to open in 2028. Nashville's East Bank district 'is poised to become a vibrant epicenter anchored by Oracle's forthcoming headquarters,' Pranav Bhakta, Driftwood's senior vice president of corporate business development, said in a statement. Nashville's hotel market is in the midst of a development boom, experts told Hotel Dive earlier this year. Dive Insight: The dual-brand hotel is a joint venture between Nashville-based Skyline Hospitality and Patrick Culligan, as well as Tampa, Florida's Sonari Capital Partners. Driftwood will conduct full-scale development oversight through its Driftwood Development Services business. Once open, Driftwood Hospitality Management will operate the hotel. The development will include approximately 10,000 square feet of meeting space, food and beverage outlets and a rooftop overlooking downtown Nashville, according to Driftwood. In a statement, Bhakta called the hotel a 'high-impact project.' 'We are confident this project will deliver a high-quality hospitality experience that aligns with the dynamic growth of the surrounding district, including Oracle's headquarters and the new Nissan Stadium,' said Jaimin Patel, managing principal at Sonari Capital Partners. Last year, Oracle announced that it would be moving its world headquarters to a 65-acre campus in Nashville, according to CNBC. Corporate relocations such as Oracle's are driving hotel growth in the city, Keith Kurland, senior managing director and co-head of New York capital markets at Walker & Dunlop, told Hotel Dive in May. 'That corporate migration, while the announcements have been made and the work is underway, those jobs still haven't even hit the market yet,' he said. The hotel will house Nashville's second Tempo by Hilton, a brand which opened its second-ever location in the city's downtown last year after debuting in 2023. The flag is part of Hilton's rapidly growing lifestyle portfolio. Recommended Reading Market Spotlight: Nashville


Business Journals
16-06-2025
- Business
- Business Journals
Luxury and lifestyle hospitality: Why investors are checking in
In a climate defined by volatility across commercial real estate, the hospitality sector, especially in luxury, upper-upscale and lifestyle segments, is emerging as a resilient and strategic investment choice. Miami-based Driftwood Capital, with its vertically integrated model and dedicated Driftwood Lifestyle & Luxury (DLLX) division, is uniquely positioned to capitalize on macroeconomic shifts, evolving demographic preferences and experiential travel demand. Macro resilience meets micro precision Despite persistent headwinds like elevated interest rates and global uncertainty, hospitality investment, particularly in premium segments, continues to exhibit robust performance. Recent data from STR and Tourism Economics forecasts RevPAR (revenue per available room) growth between 3% and 3.7% year-over-year through 2025 for upper-upscale and luxury hotels, surpassing other hotel classes. CoStar's Q1 2025 analysis further confirms the trend, indicating demand growth in luxury hotels exceeding midscale assets by 50-100 basis points. These figures underscore a distinct market bifurcation and highlight why astute investors are targeting premium hospitality. Introducing DLLX: Built for the next generation of travel Recognizing the structural evolution of hospitality, Driftwood recently launched DLLX, a division explicitly designed to harness opportunities in luxury hotels, lifestyle-driven assets and branded residences. Under the leadership of Alinio Azevedo, former CEO of Aspen Hospitality, DLLX targets more than $3 billion in deployments across carefully selected, high-growth domestic and international markets. This strategic initiative aligns with a global surge in high-net-worth and ultra-high-net-worth travelers seeking curated experiences and branded assurance. DLLX's differentiation lies in its integration with Driftwood Hospitality Management (DHM), which currently operates over 80 properties nationwide. This close partnership ensures end-to-end operational excellence from asset acquisition to ongoing management, driving investor returns through operational efficiency and data-driven insights. Case studies: Strategic execution from the Space Coast to Miami Two marquee projects illustrate Driftwood's strategic precision and innovative execution: Westin Cocoa Beach Resort, Spa, and Conference Center: A 502-room beachfront development on Florida's thriving Space Coast. Once complete, Driftwood will control approximately 62% of the beachfront inventory in a region anticipated to benefit from more than 300 annual rocket launches by 2028. Early identification of this market opportunity positions Driftwood for sustained, demand-driven outperformance. Dream Riverside Wharf, Miami: A Hyatt-branded lifestyle property situated on Miami's revitalized riverfront, featuring 165 keys and curated experiential amenities. Positioned in an Opportunity Zone and EB-5 eligible region, this project exemplifies how strategic site selection, demographic appeal and capital structure ingenuity, converge to create multi-dimensional investor benefits. Vertical integration: Driftwood's structural edge Driftwood Capital's unique advantage resides in its comprehensive control over the investment lifecycle — from origination, underwriting, and development to long-term operational management. Leveraging its proprietary Domino technology platform, Driftwood centralizes real-time operational data, enhancing decision-making agility and transparency. This structural integration optimizes cost efficiencies, execution velocity and capital deployment precision, providing investors with institutional-quality access to premium hospitality investments. Investable, experiential, integrated: Hospitality's new paradigm Today's hospitality investment is more than a traditional real estate play. Instead, it's a bet on evolving consumer behaviors and demographic trends. Branded residences, for example, achieve consistent premiums exceeding 30% over non-branded counterparts, reflecting an ongoing shift toward curated lifestyle experiences and brand assurances. With over $5 billion in historical transactions and a robust institutional syndication network, Driftwood Capital and its DLLX division are positioned to lead this new hospitality paradigm. For investors seeking durable yields, capital preservation and strategic upside in an inflation-resilient asset class, DLLX offers more than just thematic appeal. It represents structural alignment with the future of hospitality investment. Learn how Driftwood Capital is turning strategic insight into actionable opportunities by visiting or contacting us directly at . With over $5 billion in transactions to date, Driftwood's platform is built on direct ownership, disciplined underwriting, and operational expertise. Driftwood's business model provides accredited investors (as defined in Rule 501 under Regulation D) access to institutional-quality hotel assets or capital solutions on a direct deal basis following deal closing Learn more at
Yahoo
25-04-2025
- Business
- Yahoo
Driftwood Capital closes $1.2B portfolio consolidation
This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Driftwood Capital closed a $1.2 billion portfolio consolidation encompassing 18 Hilton, Marriott International and Margaritaville-branded hotels across 10 states, the company announced in a release obtained by Hotel Dive. The 4,203-key portfolio represents some of Driftwood's 'most strategically located and well-performing assets,' backed by $370 million worth of renovations or new construction in recent years, according to the company. The portfolio boasts strong market fundamentals, Driftwood detailed, positioning it for 'durable performance' despite ongoing market volatility, per CEO Carlos Rodriguez Sr. Driftwood intentionally assembled this portfolio because it reflects 'strength in markets, performance and long-term fundamentals,' Rodriguez Sr. said in a statement. Comprising some of the firm's 'highest quality assets we own and operate,' he added, the portfolio will hedge against current market volatility. The portfolio spans 'high-growth markets' in California, Texas, Florida, North Carolina, Utah, New York and elsewhere, with properties including the 520-key Margaritaville Lake Resort at Missouri's Lake of the Ozarks and the 150-key Canopy by Hilton West Palm Beach Downtown in Florida. The transaction will drive significant and long-term upside for Miami-based Driftwood, according to President and COO Carlos Rodriguez Jr. 'We see this portfolio as a blueprint for how we intend to invest and operate in the next cycle,' Carlos Rodriguez Jr. said in a statement. '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.' In September, Driftwood closed its Florida 'Space Coast' portfolio fund, which is expected to generate more than 20% internal rate of return for the company, Hotel Investment Today previously reported. '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,' Carlos Rodriguez Jr. said in Tuesday's release. Carlos Rodriguez Sr., meanwhile, said the portfolio creates a 'uniquely cohesive investment opportunity for our partners.' Industrywide, hotel investment is slated to ramp up this year, hospitality professionals previously told Hotel Dive. Sign in to access your portfolio