Driftwood Acquisitions & Development Sells SpringHill Suites Altamonte Springs

SpringHill Suites by Marriott Orlando Altamonte

ORLANDO—Driftwood Acquisitions and Development (DAD) has sold the SpringHill Suites Altamonte Springs, a Marriott-branded, 90-key hotel located 10 miles north of Orlando. The sale marks the first asset in DAD’s portfolio to complete the full investment cycle.

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 percent 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, the firm said. The buyer of the asset will continue to use DAD’s sister company, Driftwood Hospitality Management (DHM), as the operator of the hotel.

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.

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“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 CEO 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).

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.