HOUSTON—Driftwood Capital, a vertically integrated commercial real estate investment, development, and lending platform specializing in hospitality, has acquired the Hotel Indigo Houston at the Galleria, a 131-key hotel located in Houston’s uptown submarket.
Driftwood Capital, which provides investors direct access to hotel assets through its syndication model, acquired the property through its acquisition GP fund, which targets hotel acquisition opportunities in the $30 million to $150 million range. The Hotel Indigo Houston at the Galleria will be open for syndication beginning on September 1, 2021, with a minimum investment of $50,000. Driftwood Capital, which has acquired 22 full-service hotels and developed seven new ground-up hotel projects since its inception, retains a 10 percent stake in all investments.
This is the fourth hotel property that Driftwood Capital has added to its growing portfolio in the last 12 months. Earlier this year, the firm acquired the 316-room Hyatt Regency Fairfax in Virginia, and in 2020, the 248-key Hilton Southlake in Dallas and the 399-key Sheraton Pittsburgh Hotel at Station Square. All properties are managed by Driftwood Capital’s affiliate company, Driftwood Hospitality Management (DHM), a national hotel operator with over 20 years of experience.
“The hotel is well-situated in one of the largest business districts in the nation and nearby the Galleria Mall, Texas’ largest shopping mall, providing multiple demand drivers for a hospitality asset that meets the needs of this cosmopolitan neighborhood,” said Carlos J. Rodriguez Sr., CEO of Driftwood Capital. “With over 23 million square feet of office space and nearby tenants including General Electric, BBVA Compass, and Marathon Oil, the tourism and business sectors concentrated in this area will allow us to realize considerable investment gains while providing a newly branded and modern hotel to the community.”
Built in 2001 and renovated in 2009, the Hotel Indigo has over 3,000 square feet of meeting space, four meeting rooms, a fitness center, and an on-site restaurant called Crossroads Bar & Bistro. Situated in the uptown submarket, the property is found near a variety of shopping and dining options including The Galleria mall and Uptown Park, an open-air mall with specialty shops and restaurants. Nearby transit routes include Interstate 610 and Interstate 69, offering access into central Houston and throughout the greater metro area.