Driftwood Capital, a vertically integrated commercial real estate firm, has secured $33 million in refinancing for the 200-key Sheraton Park City hotel in Park City, Utah.
Berkadia South Florida’s Managing Directors Michael Weinberg and Scott Wadler, along with their team members Alec Fox and Edmund Aramayo, arranged the five-year, fixed-rate CMBS loan through Goldman Sachs Bank USA.
"The hotel, with its extensive meeting space compared to its nearby competitors, along with its close proximity to the mountains and historic main street, positions itself to continue to exceed our expectations," Carlos Rodriguez, Jr, president and COO of Driftwood Capital, said in a statement. "The group segment remains the fastest-growing demand sector in hospitality, and the hotel is primed to leverage its over 12,000 square feet of dedicated meeting space. Moreover, travelers continue to show a strong desire for leisure and outdoor activities, particularly in distinctive markets offering top-notch features and amenities. This aligns with the trend of experiential travel, especially in destinations that provide a mix of indoor and outdoor experiences."
“This marks the second successful refinancing the Driftwood, Berkadia and Goldman Sachs USA teams have accomplished together this year, following a $60.5 million refinance of Driftwood’s Margaritaville Lake of the Ozarks asset in January,” added Berkadia’s Wadler. “In the case of the Sheraton Park City, Driftwood’s 30-year track record in the hospitality space guided its repositioning of the asset following their 2017 acquisition, which resulted in substantial increases in the property’s NOI and RevPAR.”
The Sheraton Park City hotel is located near skiing, hiking and dining options. Just a 20-minute drive from Olympic Park, the hotel was originally constructed for the 2002 Winter Olympics and is surrounded by 2,000 acres of skiable terrain. The hotel is 10 minutes from downtown and 45 minutes from Salt Lake International Airport.
"Driftwood Capital and its affiliates are thrilled to unlock value for investors through a new mortgage, which will replace existing debt with favorable terms,” said David Steiner, managing director of Capital Markets at Driftwood Capital. "Park City has emerged as a global destination, supported by numerous demand generators that bolster robust hospitality fundamentals, particularly for upper upscale properties like the Sheraton Park City hotel. The city’s formidable barriers to entry make it exceptionally challenging for new supply to enter the market, likely providing downside protection.”
The centrally located hotel has an indoor atrium pool with hot tub and sauna, game room, coffee shop, and Timbers Restaurant & Bar with outside covered patio and fire pits. The Sheraton Park City also has more than 12,000 square feet of meetings and event space with indoor and outdoor options. Shuttle services are also available to take guests to historic Main Street or Park City Ski Resorts.
The closing comes on the heels of Driftwood’s recent announcement that its hotel development pipeline has exceeded $1 billion in projected value. Driftwood’s development portfolio includes $800 million projects either under construction or scheduled to break ground in 2024, demonstrating the firm’s robust and strategic position in the hospitality sector. Development projects under construction or scheduled to break ground in 2024 include:
- Element by Westin Melbourne, Fla.: A $54 million development nearing completion and expected to open in June 2024.
- Element by Westin Mission Valley San Diego: A $74 million development underway in March 2024, with completion projected in 2026.
- Westin Resort & Spa Cocoa Beach, Fla.: An approximately $410 million luxury resort development expected to break ground in Q3 of 2024.
- Riverside Wharf Miami: A $267 million, transformative mixed-use development located on downtown Miami's riverfront, featuring a Dream Hotel. Groundbreaking is expected in the latter half of 2024.