Driftwood Capital has agreed to consolidate 18 hotels in its portfolio in a deal worth $1.2 billion.
The transaction spans across 10 states and 4,203 rooms, according to a report from CoStar. The following hotels were namely listed in the deal: 250-room Hilton Dallas Southlake Town Square, 353-key Marriott San Diego Mission Valley, 520-room Margaritaville Lake Resort Lake of the Ozarks in Osage Beach, 131-room Hotel Vesper, Houston, and 150-key Canopy by Hilton West Palm Beach Downtown.
While the other hotels were not listed, the rest of the portfolio is located in major markets, including New York, Utah, and North Carolina. Additionally, all of the properties in the transaction have either gone through a full renovation or were recently constructed.
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“We see this portfolio as a blueprint for how we intend to invest and operate in the next cycle,” Carlos Rodriguez Jr., president and chief operating officer of Driftwood, said, according to CoStar.
“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."
To add more about the Space Coast Fund, it involved four Florida properties, and it combined for more than $2 billion in recapitalizations with the 18-hotel consolidation deal.
According to McKenna Luke of Partner Valuation Advisors’ National Hospitality Practice Group, the hospitality sector is poised to thrive despite some future economic uncertainties. She said that the consensus is that RevPAR will rise "modestly" this year and into 2026 and will likely be below inflation levels. The following subtypes within hospitality are expected to boom, including extended-stay assets, outdoor experiential lodging, boutique and luxury hotels, and branded residential.
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