Driftwood Capital has closed a $138.7 million financing package for two resort hotels located in Estes Park, Colo., on behalf of the sponsor Grand Heritage Hotel Group. The proceeds cover the refinancing of the historic Stanley Campus, which has four lodging options comprising 192 guestrooms and 31 condo units, along with the acquisition of the nearby Fall River Village Resort, an 89-key lodge.
Driftwood contributed a $24.3 million mezzanine loan through its lending fund, Driftwood Lending Partners, behind a $114.4 million senior financing package originated by a major life insurance company. The sponsor will use $6.9 million of the proceeds toward renovations of the Stanley Hotel in early 2022, including conversion of the ballroom to a restaurant, bathroom updates in the hotel’s main building, improvements to the presidential cottage and investments in several new food and beverage venues and related amenities.
“Combining the two properties under single ownership will provide operational synergies at both hotels and further enhance the credit of Driftwood’s position,” said David Steiner, Driftwood Capital’s managing director of capital markets, in a statement. “Adding two hotels to DLP’s portfolio that were resilient during the pandemic and are poised for future growth was a great way to round out 2021.”
Since the fund’s launch in late 2020, DLP has closed on more than $420 million of 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.