Miami-based Driftwood Acquisitions and Development sold a 90-key Springhill Suites hotel near Orlando for $11.65 million.
Driftwood acquired the Springhill Suites Altamonte Springs out of receivership in 2015, then kept a 10 percent equity stake in the property while selling the other 90 percent to individual investors.
Driftwood initially projected a 16 percent internal rate of return but said in a press release that “the sale of the asset yielded significantly higher dividends and total returns.”
The Marriott-branded Springhill Suites hotel is located 10 miles north of Orlando at 205 West State Road 436 in Altamonte Springs. The new owner will retain Driftwood’s sister company, Driftwood Hospitality Management, as the hotel’s operator.
The Springhill Suites Altamonte Springs was the first hotel that Driftwood syndicated to investors and sold.
“Its successful disposition marks a significant milestone and is a testament to the success of our unique business model,” Carlos J. Rodriguez, chairman and chief executive officer of Driftwood, said in prepared remarks.
Driftwood’s business model allows accredited investors to co-invest a minimum of $100,000 in fully financed, institutional-quality hotels with positive cash flow.
Since its inception in 2015, Driftwood has built a national portfolio that now includes 18 hotels and two hotel developments. – Mike Seemuth