Driftwood Acquisitions & Development Sells SpringHill Suites Altamonte Springs
January 16, 2019 11:58am
Orlando, Fla. (Jan. 15, 2019) – Driftwood Acquisitions and Development (DAD) – a privately held firm specializing in the acquisition, repositioning and investment syndication of high-quality hotel assets – announced today that it sold the SpringHill Suites Altamonte Springs, a Marriott-branded, 90-key hotel located 10 miles north of Orlando.
DAD acquired the asset in 2015 out of receivership, with little renovation needed, as a cash-flowing market play. While maintaining a 10 percent equity stake in the property, the firm syndicated the remaining 90% of its equity position to individual accredited investors after closing, projecting a 16 percent internal rate of return (IRR). The sale of the asset yielded significantly higher dividends and total returns than those expected at underwriting, and marks the first asset in DAD’s portfolio to complete the full investment cycle. The buyer of the asset will continue to use DAD’s sister company, Driftwood Hospitality Management (DHM), as the operator of the hotel, a testament to Driftwood’s management expertise and its view of the asset’s continued success.
DAD was created as a unique perpetual fund that invites accredited investors to co-invest in its hotels, asset by asset, through syndication post-closing. This allows investors to minimize their exposure and risk on institutional-quality, fully-financed, income-producing hotel projects in the United States.
“The SpringHill Suites Altamonte Springs was the first hotel DAD syndicated to investors so its successful disposition marks a significant milestone and is a testament to the success of our unique business model,” said Carlos J. Rodriguez Sr., chairman and chief executive officer of DAD. “Many of our original investors plan to take the outsized returns they received from this investment and put it back into other DAD assets, including those in Opportunity Zones where there is potential to realize significant tax benefits such as deferring capital gains tax exposure on this sale.”
Since launching in 2015, the Miami-based DAD has built a national portfolio that includes 18 operating hotels and two new-build developments under construction, including one in a designated Opportunity Zone. All of its properties are managed and operated by DAD’s sister company, Driftwood Hospitality Management (DHM), a hotel operator with over 20 years of expertise.
Located at 205 West State Road 436, the SpringHill Suites Altamonte Springs is in Seminole County just north of Orlando. The hotel is one block west from Interstate 4 and serves local corporate, sporting and healthcare demand generators including AT&T, Liberty Mutual, Mitsubishi Power Systems, Sprint, Florida Hospital, and Orlando Youth Hockey.
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springhill suites altamonte springs,
driftwood hospitality management
Driftwood Acquisitions & Development, LP (DAD) is a Miami, Florida-based company with a first-of-its-kind business model allowing accredited investors to co-invest in fully financed, institutional-quality, cash-flowing hotel assets at low entry points (minimum $100,000 investment). DAD selectively acquires high-quality hotel assets with its own capital, installs new professional management, and then allows clients to participate in the investment. DAD is also a reputable leader in the EB-5 Investor program, a government initiative to attract foreign investment to create jobs in the U.S. DAD has helped over 120 foreign investors in their US Visa process and in turn has created hundreds of jobs by developing EB-5 qualified hotels. For more information, please visit www.dadlp.com.
Driftwood Hospitality Management is a leader in providing solutions-based services for the domestic and international hotel industry. Driftwood works with award winning franchises, nationally recognized hospitality brands and major resort destinations in top markets around the United States and Costa Rica. Headquartered in North Palm Beach, Florida, Driftwood has additional offices in Miami, Arizona and Costa Rica to serve hotels across the United States and internationally. The Driftwood Hospitality executive team provides more than two decades of combined hotel experience with a focus on hotel operations. Driftwood’s goal is to capitalize upon growth opportunities, form strategic partnerships, and work with under-performing hotels in various markets to ensure long-term growth. With over 15 years of expertise in acquisition, development, repositioning, renovations, and hotel operations, Driftwood brings a tailored approach to each property and market, ensuring that clients receive the highest level of service and are positioned for growth. For more information, please visit www.driftwoodhospitality.com.
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