Driftwood Capital's CEO, Carlos Rodriguez, Sr., shares his thoughts on navigating through the pandemic as well as the future growth of the company
When you invest, develop, lend and manage, you serve multiple constituents with different expectations. For Miami-based Driftwood Capital, which has transacted on more than US$3 billion in hospitality assets and uniquely provides a network of more than 1,200 accredited investors access to direct investing after deals close, the big takeaway about managing those expectations through the challenging past two years has been the importance of ongoing education and communication through all four of its platforms. As Carlos Rodriguez, Sr., CEO of Driftwood Capital, puts it, “At the end of the day, it’s all about trust and letting everyone know where you stand and what is happening.”
Driftwood Capital Acquires The Scottsdale Resort at McCormick Ranch in Arizona
Driftwood Capital has acquired The Scottsdale Resort at McCormick Ranch, a sprawling, hacienda-style resort with 326 guestrooms located on 16 lush acres in one of Arizona’s most exclusive planned communities.
Driftwood Capital plans to complete a multimillion-dollar renovation that will convert the Hotel to a Curio Collection by Hilton, a global upscale brand of one-of-a-kind hotels and resorts handpicked for their distinct character. The renovation will completely transform all guest-facing areas of the Hotel, including new food and beverage concepts, a complete revamp of the resort-style pool, and a new and expanded spa and fitness center.
Driftwood successfully completes second exit, sells Sheraton Salt Lake City
Despite difficult market conditions due to the ongoing pandemic, Driftwood identified an off-market buyer and closed on the sale of the Salt Lake City Sheraton in December 2021.
The disposition represents an attractive exit following a five-year hold period during which Driftwood successfully executed on its business plan for the asset, including completion of a renovation, delivering a 32% cash-on-cash return based on distributions made as of Q3 2021. The transaction represents a 12.5% IRR and 1.68x equity multiple to LP investors.
Following successful execution of business plans, two EB-5 projects have returned capital & achieved targeted returns
We are pleased to announce that all EB-5 investors in the projects known as Residence Inn West Miami & Tru/Home2 Suites Ft. Lauderdale have now achieved targeted returns and a return of capital (in some instances, subject to holdbacks for compliance with immigration regulations). Funds provided by EB-5 investors assisted with the construction costs of the two hotels, the development of which created more than 800 jobs in South Florida. Both hotels are open and operational.
Driftwood Capital has a long-term commitment to the EB-5 program and will next focus on raising EB-5 investment capital for the project known as "The Riverside Wharf", a $180 million mixed-use development located in a targeted employment area in Miami that will generate 500+ permanent jobs in downtown Miami.
Driftwood Capital Acquires The Scottsdale Resort at McCormick Ranch in Arizona
Driftwood Capital has acquired The Scottsdale Resort at McCormick Ranch, a sprawling, hacienda-style resort with 326 guestrooms located on 16 lush acres in one of Arizona’s most exclusive planned communities.
Driftwood Capital plans to complete a multimillion-dollar renovation that will convert the Hotel to a Curio Collection by Hilton, a global upscale brand of one-of-a-kind hotels and resorts handpicked for their distinct character. The renovation will completely transform all guest-facing areas of the Hotel, including new food and beverage concepts, a complete revamp of the resort-style pool, and a new and expanded spa and fitness center.
Driftwood successfully completes second exit, sells Sheraton Salt Lake City
Despite difficult market conditions due to the ongoing pandemic, Driftwood identified an off-market buyer and closed on the sale of the Salt Lake City Sheraton in December 2021.
The disposition represents an attractive exit following a five-year hold period during which Driftwood successfully executed on its business plan for the asset, including completion of a renovation, delivering a 32% cash-on-cash return based on distributions made as of Q3 2021. The transaction represents a 12.5% IRR and 1.68x equity multiple to LP investors.
Following successful execution of business plans, two EB-5 projects have returned capital & achieved targeted returns
We are pleased to announce that all EB-5 investors in the projects known as Residence Inn West Miami & Tru/Home2 Suites Ft. Lauderdale have now achieved targeted returns and a return of capital (in some instances, subject to holdbacks for compliance with immigration regulations). Funds provided by EB-5 investors assisted with the construction costs of the two hotels, the development of which created more than 800 jobs in South Florida. Both hotels are open and operational.
Driftwood Capital has a long-term commitment to the EB-5 program and will next focus on raising EB-5 investment capital for the project known as "The Riverside Wharf", a $180 million mixed-use development located in a targeted employment area in Miami that will generate 500+ permanent jobs in downtown Miami.
What's new in the industry
Hotels Magazine
April 4, 2022
Driftwood Capital's CEO, Carlos Rodriguez, Sr., shares his thoughts on navigating through the pandemic as well as the future growth of the company
When you invest, develop, lend and manage, you serve multiple constituents with different expectations. For Miami-based Driftwood Capital, which has transacted on more than US$3 billion in hospitality assets and uniquely provides a network of more than 1,200 accredited investors access to direct investing after deals close, the big takeaway about managing those expectations through the challenging past two years has been the importance of ongoing education and communication through all four of its platforms. As Carlos Rodriguez, Sr., CEO of Driftwood Capital, puts it, “At the end of the day, it’s all about trust and letting everyone know where you stand and what is happening.”
According to HotStats, Q1 2022 hotel performance ended strong with March profit surging across most global regions, a sign of stronger revenues, better conversion rates, and new worries over a COVID upsurge not discouraging would-be travelers.
U.S. hotel construction up 2% by projects, down 3% by rooms
According to the "Q1 2022 Construction Pipeline Trend Report" for the United States from Lodging Econometrics, the total U.S. construction pipeline stood at 5,090 hotels with 606,302 rooms at the end of the first quarter of 2022.
Global Business Travel Recovery Sees Double-Digit Surge Since February
Business travel is surging forward, international travel is returning and despite new challenges, industry recovery is entrenched. In addition, corporate travel policies are undergoing a revamp and employees are broadly willing to travel for business.
The semi-annual report collected the opinions, experiences and predictions of nearly 100 hotel asset managers concerning the hospitality industry since the beginning of the pandemic through today.
Knowland’s Meetings and Events Report Indicates March Meetings Up 55 Percent from February
Meetings volume from February to March increased 55.5 percent. Even more significant is a 428 percent increase over March 2021. Individual recovery metrics (average attendees and average space used) are level with 2019. Additionally, March 2022 achieved a 47.5 percent recovery of events from March 2019.
As the pandemic wanes, some cities and city hotels are reporting significant improvement in occupancy, indicating that a comeback could be in the cards this year for urban destinations.
First Quarter Hotel Acquisition Volume Points to Robust Activity for 2022
Over $12.5 billion worth of hotel properties traded hands in the first three months of the year, marking the best opening quarter since 2016. Investor interest remains strong, continuing the trend from 2021 in which CoStar reported total annual asset sales volume of $50 billion, the highest ever recorded.
Hotel demand from families with students on spring break, as well as college basketball teams and March Madness fans during the NCAA men's basketball tournament, drove the U.S. hotel industry to its highest weekly occupancy since the end of summer 2021.
Business travel volume may be on the comeback trail but still remains below 2019 levels, and hoteliers in the meantime have successfully maintained high average daily rates to counteract lower occupancy levels, analysts said this week during Atlanta’s Hunter Hotel Investment Conference.
SDSU Analysis Highlights Benefits of In-Person Business Travel and Meetings to Organizations
An analysis conducted by the San Diego State University School of Hospitality & Tourism Management on behalf of the American Hotel & Lodging Association (AHLA) found that in-person business travel and meetings have undeniable advantages over virtual options.
U.S. hotel performance rose during the middle of March from the previous week and showed improved comparisons against 2019, according to STR's latest data. The company credits the uptick to spring break travel.
Group demand returned to Q3 2021 levels, while transient demand indexed to 2019 exceeded the prior high from December 2021. Transient demand continues to be heavily influenced by weekend leisure travel.
Expect a Year of Continued Growth for the Travel Industry
After two years of uncertainty, MMGY's research forecasts ongoing improvement and growth in both the leisure and business travel sectors. As the pandemic begins to wane, the perceived safety of travel has improved by leaps and bounds.
U.S. Spring Break destinations continue dominance with peak still to come
Leisure travel continues to be particularly strong in the U.S. as spring kicks into gear, and the biggest hotel performance wins recently have come in those U.S. markets that are traditional Spring Break destinations. At the same time, major urban centers are seeing some return of transient business demand along with increases in group bookings.
Travelport Survey Finds People Prioritize Travel over Entertainment, Shopping and Even Self-care
Travelport today revealed a new survey that highlighted excitement to travel in 2022. In a study commissioned by Travelport and conducted by Toluna Research, thousands of respondents from seven different countries said they’d even be willing to give up some of their favorite things for six months or longer in order to travel.
Hotel Execs at Hunter Hotel Investment Conference Convinced Industry Will Overcome Headwinds
Whether concerns that higher gas prices could deter leisure travelers from taking a road trip this summer or that another wave of COVID-19 could wreak havoc on certain hotel segments, the overall theme was that the worst is behind us.
American Express Travel releases 2022 Global Travel Trends Report
Painting a bright state on the future of travel, American Express Travel discovered that spending on travel is outpacing pre-pandemic levels: 86% of respondents expect to spend more or the same on travel in 2022 compared to a typical year before the pandemic.
U.S. Road Trips Exceed Pre-Pandemic Levels for the First Time
Despite rising gas prices and inflation, U.S. road trips have risen above pre-pandemic levels according to Arrivalist, the leading location intelligence platform in the travel industry. As spring break travel nears, for the first time in its two-year history, the 28-day rolling average of Arrivalist's Daily Travel Index peaked above 2019 levels.
Knowland: Meetings volume up nearly 50% month over month
Knowland's monthly meetings and events data for February shows that meetings volume from January to February increased 48.1 percent. The volume was up 340 percent over February 2021.
Hotel Executives Foresee Group Travel Boom in 2022
While leisure demand has been the darling of the hotel recovery, hotel executives believe we're in the very early stages of a robust comeback for group and events.
