Margaritaville Lake Resort secures $60.5M refinancing

Driftwood Capital, a vertically integrated commercial real estate firm, facilitated the $60.5 million refinancing of Margaritaville Lake Resort, Lake of the Ozarks, a 520-key resort in Osage Beach, Mo.

Managing directors Michael Weinberg and Scott Wadler, along with associate director Alec Fox of Berkadia South Florida, arranged the financing through Goldman Sachs Bank USA and Starwood Mortgage Capital.

"We are excited to collaborate with our lending partners to refinance Margaritaville Lake Resort Lake of the Ozarks," Driftwood Capital President and COO Carlos Rodriguez, Jr., said in a statement. "The $60.5 million loan enables us to unlock tremendous value for our investors. Since acquiring and repositioning the iconic Tan-Tar-A Resort into a Margaritaville hotel, we have increased revenue by more than 50 percent, significantly outperforming our underwriting and solidifying our belief in the lifestyle concept."

The five-year loan includes full-term interest only payments at a competitive interest rate.

“Driftwood has done an excellent job in transforming the property since their 2017 acquisition, carrying out a complex business plan which included significant capital investment, creation of several new revenue streams, and flagging the hotel as one of the nation’s first Margaritaville Resorts," Fox said. "Through their well-executed efforts, the property is now the top-performing asset in the area, which facilitated securing favorable new debt terms for Driftwood and their partners."

Amenities at the Margaritaville Resort Lake of the Ozarks include a marina, championship golf course, indoor water park and spa as well as seven restaurants and bars.

"The centrally located resort benefits from strong multi-segment group and leisure business throughout the Midwest," said Daniel Katz, VP, asset management at Driftwood Capital. "To accommodate strong demand and position the resort for future growth, we recently completed the construction of 26 additional guestrooms. The resort features comprehensive leisure amenities including its marina, golf course, indoor waterpark, spa, seven dining outlets, and 75,000+ square feet of indoor meeting space. We believe guests will continue to prioritize experiential spending when making their travel decisions."