MIAMI—Driftwood Capital, a vertically integrated commercial real estate investment, development, and lending platform for the hospitality industries, has acquired the Sheraton Old San Juan, a 240-room hotel and 27,500 square foot retail complex in Old San Juan, Puerto Rico. Driftwood intends to undertake a full-scale renovation of the property and convert it to a Tribute By Marriott—making it the only branded hotel in the historic district. It will be managed by Driftwood Capital’s sister company, Driftwood Hospitality Management (DHM), a national hotel operator with over 20 years of expertise.
“This hotel boasts an extraordinary location at the entrance to Old San Juan, just steps away from Pier Three and the Port of San Juan, the busiest port in the Caribbean, making it one of the first buildings that tourists see upon arrival to the city,” said Johannah Rodriguez, managing director of acquisitions with Driftwood Capital. “Driftwood’s full-scale renovation will transform the arrival experience for guests to better capture the romantic, Old World charm of the hotel’s surroundings, while also modernizing and upgrading all areas of the property to ensure a consistent, high-quality, full-service lodging experience.”
As part of the renovation, Driftwood will also introduce a new concept for the hotel’s second-floor restaurant with the goal of creating a social scene that will draw in both hotel guests and cruise ship visitors.
Added Carlos Rodriguez Sr., CEO of Driftwood Capital, “San Juan’s lodging market has historically been one of the most stable lodging markets in the United States and is poised to see a significant bounce back as we enter 2022. Furthermore, the hotel will continue to benefit from the reservation and marketing platforms of Marriott, specifically Marriott’s loyalty program, Bonvoy. As the only branded hotel in the Historic Old San Juan district, this property will be well positioned to utilize this powerful reservation system to attract guests.”
Sheraton Old San Juan consists of the main building—a nine-story, 180,739 square foot property with 240 rooms, including 44 suites, 10 meeting rooms totaling 9,114 square feet, a rooftop pool, a business center, a fitness center, and two restaurants. In addition, the property includes a two-story, 27,500 square foot retail complex, which is home to tenants including Walgreens, Senor Frogs, Harley Davidson, and Nespresso.
With this acquisition, Driftwood Capital’s portfolio grows to 23 full-service hotels and seven new ground-up hotel developments. Since 2015, the principals of Driftwood Capital have transacted more than $1.5 billion in hospitality assets backed by capital from an investor network of family offices, individuals, and others. 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 and Canopy by Hilton Tempe.