Investment Strategies

Institutional-grade transactions conducted by hospitality experts
Wylie Hotel — Atlanta, GA

Acquisitions

Existing assets with unique value propositions and strong underlying fundamentals

Driftwood’s team of industry leaders sources, underwrites and structures complex deals. Deep relationships with brokers, lenders and brands ensure Driftwood Capital sees the most compelling deals in the market.

With more than 200 acquisition opportunities carefully reviewed annually, we believe we have developed a thorough set of underwriting criteria to find core, value-add, and opportunistic investments that deliver meaningful risk-adjusted returns for investors.
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Development

Building hotels from the ground up with a vision for the future

Driftwood Capital’s strong, in-house team is knowledgable in all aspects of hospitality development, including underwriting, site identification, land assembly, zoning and entitlements, financing, design/construction oversight and pre-opening management.

Our deep network of joint venture partners includes brokers, lenders, brands and commercial real estate professionals who are seeking a hospitality counterpart. When choosing a development project, we consider such factors as barriers to entry, tax credits and other inducements, key money and other points of differentiation.

Additionally, we utilize unique capital formation strategies that take advantage of Federal programs such as Qualified Opportunity Zones and the EB-5 Investment Program, for which we have dedicated team members.
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Canopy by Hilton Tempe Downtown — Tempe, AZ
Shashi Hotel Mountain View — Mountain View, CA

Lending

Strategic loans to credit-worthy sponsors

Capital markets capabilities combined with deep industry knowledge enables Driftwood to make high-yield mezzanine and preferred equity investments in quality, franchised or select independent boutique hotels and resorts throughout the United States. Investments may yield “equity-like” returns for “debt-like” risk, with downside protection through substantial equity subordination.

We analyze lending opportunities through an equity lens, leveraging decades of industry knowledge as owners and developers. We also underwrite the sponsorship group to ensure credit-worthiness and good character. Should the borrower default, we believe Driftwood Capital is uniquely positioned to protect the investment.
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Management

Fully integrated approach to operations

Driftwood Capital’s management platform brings a comprehensive approach to realizing cost efficiencies and optimizing revenue management, all with outstanding client service. We combine decades of experience with an entrepreneurial spirit and encourage independence, strategic problem-solving and use of systems, data and processes to achieve goals.

A diversified portfolio of hotels throughout the United States and 15,000 keys under management encourages our team to continually develop and refine best practices that are then introduced across our portfolio of select service, full-service, extended stay and convention center properties.
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Stanley Hotel — Estes Park, CO