Driftwood Hospitality Management launched a new affiliate, Driftwood Acquisitions and Development, after a successful $40 million equity raise. The venture, led by EVP Carlos J. Rodriguez, who will serve as CEO and chairman, gives Driftwood the capability to close on new land and hotel acquisitions upfront, leaving room for a second stage raising of capital from non-institutional investment groups.
Driftwood Hospitality Management’s core pursuit will remain large-scale acquisitions and management contracts in primary markets with institutional investors. However, DAD will target local development opportunities and smaller-scale acquisition opportunities in secondary and tertiary markets across the United States. As a complementary vehicle, DAD will align the company with foreign investment groups and U.S.-based, high-net-worth individuals, in order to acquire and develop hotels that are outside the radar of large institutional funds.
DAD has three hotels already under contract and is currently pursuing five additional deals. In the coming weeks, Driftwood will also implement a new online platform where investors can access all pertinent information relating to existing and future deals.
DAD will also be responsible for the execution and management of Driftwood’s recently announced EB-5 foreign investment initiative, targeting new development projects in South Florida, specifically.