DALLAS—Driftwood Capital, through its lending fund Driftwood Lending Partners, LP (DLP), provided $30 million in mezzanine financing for the refinancing of the Sheraton Dallas Hotel, a 1,841-key hotel and convention center sponsored by Chartres Lodging Group.
The mezzanine financing will accompany a $270 million senior loan originated by Goldman Sachs and JP Morgan Securities. The two-year, floating-rate loan includes three one-year extension options.
“As demand for full-service hotels and dynamic meeting spaces elevates, owner/operators continue to seek favorable loan terms to capitalize on this trend with longer holding periods,” said Carlos Rodriguez Sr., chairman and CEO of Driftwood Capital. “The addition of this mezzanine loan also speaks to the need for gap financing that allows firms to continue their investment strategies while allowing us to provide continuity to the hotel industry.”
Since the fund’s launch in late 2020, DLP has participated in more than $1.4 billion in financing for hotels and sponsors across the country. The Fund focuses on providing mezzanine loans and preferred equity for existing hospitality assets, as well as ground-up hotel development projects in the United States.
Built in 1959, the Sheraton Dallas Hotel has more than 230,000 square feet of meeting and pre-function space. It includes five onsite restaurants, 113 meeting rooms, and 1,100 parking spaces with a suite of full-service amenities.
Situated in the City Center District of Dallas, the hotel is found near multiple transit hubs providing direct access to the hotel. Dallas Love Field is approximately 15 minutes away, with DFW International Airport a 30-minute drive from the property. Dallas Area Rapid Transit’s Pearl/Arts District Station is also at the property.
Recently, Driftwood announced that its hotel development pipeline has exceeded $1 billion in projected value. Driftwood’s development portfolio includes $800 million in projects either under construction or scheduled to break ground in 2024. Development projects under construction or scheduled to break ground in 2024 include:
- Element by Westin Melbourne, Florida: A $54 million development nearing completion and expected to open in June 2024.
- Element by Westin Mission Valley San Diego, California: A $74 million development underway in March 2024, with completion projected in 2026.
- Westin Resort & Spa Cocoa Beach, Florida: An approximately $410 million luxury resort development expected to break ground in Q3 of 2024.
- Riverside Wharf Miami, Florida: A $267 million, transformative mixed-use development located on downtown Miami’s riverfront, featuring a Dream Hotel. Ground is expected to break in the latter half of 2024.
Driftwood has also completed several renovations and revamps, including the Scottsdale Resort and Spa, Curio Collection by Hilton, Hotel Rumbao, a Tribute Portfolio Hotel, Hotel Vesper in Houston, a Tribute Portfolio Hotel, and the Hilton Dallas/Southlake Town Square. An upcoming update is also planned for the Hilton Dallas/Plano Granite Park, which is projected to be completed in 2024.
