Driftwood Capital Acquires 248-Key Hilton Hotel in Dallas
Driftwood Capital, a vertically integrated commercial real estate investment, development, and lending platform specializing in hospitality, announced today that it has acquired the Hilton Dallas Southlake Town Square, a 248-key, five-story hotel located in the Dallas suburb of Southlake, approximately 10 minutes from the Dallas-Fort Worth International Airport. Driftwood Capital acquired the asset from Hobbs & Curry family limited partnership for an undisclosed price, and plans to invest $5 million in property renovations over the next 12 months. The property will be managed by Driftwood Capital's sister company, Driftwood Hospitality Management (DHM), a national hotel operator with over 20 years of expertise.
Driftwood Capital provides high-net-worth investors direct access to institutional-quality hotel assets through its unique syndication model. Earlier this year, the company raised $250 million for the launch of three new Development, Acquisitions and Mezzanine Lending GP funds. The Dallas property was acquired through the Acquisition fund, which targets hotel opportunities in the $30 million to $150 million range.
Driftwood will open the property to investors for syndication in early February with a minimum investment of $50,000. Driftwood Capital retains a 10 percent stake in all its hotel investments.
"The Hilton Southlake offered a high-quality asset in a premier location with ample upside opportunity," said Carlos Rodriguez Sr., CEO of Driftwood Capital. "Having recently received capital improvements throughout the property, the Hilton Southlake has a competitive advantage that is furthered by its exceptional location. Surrounded by high-end retail, dining and Class A office space, the property is poised for success following a strategic repositioning that will benefit from the leisure and corporate demand in the area."
Built in 2007, Hilton Southlake is located at 1400 Plaza Place. Featuring almost 18,000 square feet of diverse meeting space, the hotel's proximity to corporations such as Fidelity Investments, Deloitte and TD Ameritrade, among others, provides a strong base for the asset to build upon. The 10-minute drive to Dallas-Fort Worth International Airport also works to the hotel's advantage, serving leisurely guests seeking a lifestyle destination offered by Southlake's distinct atmosphere.
With this acquisition, Driftwood Capital's portfolio grows to 20 full-service hotels and seven new ground-up hotel developments. Since 2015, the principals of Driftwood Capital have placed more than $650 million in capital with their investor network of family offices, high-net-worth individuals, and others, representing a portfolio of over $1 billion in hospitality assets. Among these assets are the Marriott Mission Valley San Diego, the Sheraton Park City, and the Margaritaville Lake of the Ozarks, as well as the newly opened Canopy by Hilton West Palm Beach & Canopy by Hilton Tempe.