Driftwood Capital—a commercial real estate investment, development and lending platform specializing in hospitality—has announced that it acquired the Sheraton Old San Juan, a 240-room hotel and 27,500-square-foot retail complex in Old San Juan, Puerto Rico.
Driftwood intends to undertake a full-scale renovation of the property and convert it to a Tribute by Marriott, making it the only branded hotel in the historic district. It will be managed by Driftwood Capital’s sister company, Driftwood Hospitality Management.
As part of the renovation, Driftwood will also unveil a new concept for the hotel’s second-floor restaurant, which overlooks Old San Juan Harbor, with the goal of creating a space to attract both hotel guests and cruise ship visitors.
Sheraton Old San Juan consists of the main building—a nine-story, 180,739-square-foot property with 240 rooms, including 44 suites, 10 meeting rooms totaling 9,114 square feet, a rooftop pool, a business center, a fitness center, and two restaurants. In addition, the property includes a two-story, 27,500-square foot retail complex.
With this acquisition, Driftwood Capital’s portfolio grows to 23 full-service hotels and seven new ground-up hotel developments. Since 2015, the principals of Driftwood Capital have transacted on more than $1.5 billion in hospitality assets backed by capital from an investor network of family offices, high-net-worth individuals, and others. Among these assets are the Marriott Mission Valley San Diego, the Sheraton Park City, and the Margaritaville Lake of the Ozarks, as well as the newly opened Canopy by Hilton West Palm Beach & Canopy by Hilton Tempe.