Driftwood Capital has, through its lending fund Driftwood Lending Partners, provided $30 million in mezzanine financing for the refinancing of the Sheraton Dallas hotel, a 1,841-key hotel and convention center serving as the largest hotel in Texas and which is sponsored by Chartres Lodging Group.
The mezzanine financing will accompany a $270 million senior loan originated by Goldman Sachs and JP Morgan Securities. The two-year, floating-rate loan includes three one-year extension options.
“As demand for full-service hotels and dynamic meeting spaces elevates, owner/operators continue to seek favorable loan terms to capitalize on this trend with longer holding periods,” Driftwood Capital CEO and Chairman Carlos Rodriguez Sr. said in a statement. “The addition of this mezzanine loan also speaks to the need for gap financing that allows firms to continue their investment strategies while allowing us to provide continuity to the hotel industry.”
Since the fund’s launch in late 2020, DLP has participated in more than $1.4 billion in financing for hotels and sponsors across the country. The fund focuses on providing mezzanine loans and preferred equity for existing hospitality assets as well as ground-up hotel development projects in the United States.
Built in 1959, the Sheraton Dallas Hotel is located in downtown Dallas. With more than 230,000 square feet of meeting and pre-function space, the renovated hotel includes five onsite restaurants, 113 meeting rooms and 1,100 parking spaces with a suite of full-service amenities.
The hotel is found near multiple transit hubs providing direct access to the hotel. Dallas Love Field is approximately 15 minutes away, with DFW International Airport about a 30 minute-drive from the property. Dallas Area Rapid Transit’s Pearl/Arts District Station is also a at the property.
Driftwood Capital’s investment strategies include hospitality acquisition, development and lending. Recently, Driftwood announced 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.