Invest in Hilton Dallas/Southlake Town Square — Southlake, TX

Open for Investment

We are pleased to invite you to co-invest with us in our latest hotel acquisition, the 248 Hilton Dallas/Southlake Town Square in Southlake, TX.

11.9%

Projected Cash-on-Cash return

16.5%

Projected IRR

$50K

Minimum Investment

5-7 Years

Anticipated Term

Deal Highlights

BETTER THAN MARKET LOAN TERMS

Driftwood Acquisitions Partners has successfully secured financing through the Seller who provided a note with a much more favorable funding leverage ratio of 69% of the purchase price plus renovation amount based on the fully funded amount of $48.0 million, and at an interest rate equal to 1% for the first year with a point increase yearly until the interest rate equals 5% in year five.

TOP REVPAR PERFORMER AND STRONG RECOGNITION

The Hotel is one of the top RevPAR hotels in the DFW Metroplex MSA and holds the top three RevPAR in the state of Texas amongst other Hiltons. (1)

STRATEGIC RENOVATION TO GUEST FACING AREAS

To ensure the Hotel will maintain its market-leading position once the travel industry recovers from COVID-19 disruption, Driftwood Acquisitions Partners will complete a $5.2 million ($20,992/key) renovation in years 1 and 2 of the hold period.

EXPERIENCED OPERATORS

Driftwood Hospitality Management experience with full-service hotels, specifically the Hilton Dallas Rockwall, allowed Driftwood Acquisitions Partners to identify significant cost savings that can be executed in short order and will translate to a higher GOP margin.

LOCATION

Dallas/Fort Worth Metroplex is considered one of the strongest and most insulated economies in the country and is home to 22 Fortune 500 companies and 43 Fortune 1,000 companies. (2)

PROJECTED INVESTOR DISTRIBUTIONS SCHEDULE

Investors are expected to receive distributions on a quarterly basis. For the projected investment hold period of three years, distributions are projected as follows assuming a $100,000 investment in the Partnership:

2021

2022

2023

2024

2025

Q1

$1,049$2,295$3,458$4,173$4,442

Q2

$1,642$2,526$3,807$4,606$4,442

Q3

$2,844$1,732$2,612$3,119$2,886

Q4

$2,839$1,883$2,838$3,401$134,964

 

Market Highlights

ROBUST AND DIVERSE ECONOMY

The Dallas-Fort Worth regional economy is among the most diverse in the nation. Dallas economy encompasses banking, commerce, telecommunications, technology, energy, healthcare and medical research, transportation, logistics, defense, and aircraft manufacturing.

IRREPLACEABLE LOCATION

The Hotel’s superb location inside Towne Square provides walkability to multiple demand generators and strong brand recognition, which will allow the Hotel to maintain its competitive advantage despite the new supply.

INCOMING MARKET AND SUBMARKET DEMAND GENERATORS

While most large metro markets in the US have seen significantly accelerated out-migration patterns, the Dallas Forth Worth Metroplex has become one of the in-migration markets which has benefited from the relocation of several companies relocating from high-tax states. (3)

DIVERSE DEMAND GENERATORS

The Hotel’s unique location proximate to dynamic demand generators and large corporate offices caters to both commercial and leisure travelers, attracting year-round lodging demand.

Who we are

Driftwood Capital is a vertically integrated commercial real estate investment, development, and lending platform specializing in hospitality. The principals of Driftwood Capital boast a 30+ year track record transacting on more than $5 billion in hospitality assets through various affiliated management and ownership entities. Driftwood Capital’s ever-growing syndicated investor network has expanded to more than 700 investors comprised of high-net-worth individuals, family offices, and small institutional investors across the globe. Driftwood Capital provides the necessary structure and high-quality opportunities for accredited investors to achieve long-term capital growth and wealth preservation.

Our Unique Investment Model

1

We analyze lending opportunities through an equity lens, leveraging our industry-leading expertise as hotel owners and developers

2

Once the opportunity has passed our underwriting process, we negotiate an intercreditor agreement with the senior lender that allows us to take over in case of default

3

Once the loan is funded, we syndicate up to 95% to investors with a minimum investment of $50,000 USD

4

We seek to provide investors an 8-12% IRR on a 3-5 year hold

Only for accredited investors

Unfortunately, investment deals are currently limited to accredited investors only

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Legal disclaimers & footnotes

Projected Investor Distributions Schedule

This investment example, including the projected distributions associated therewith, is provided for illustrative purposes only and is not necessarily indicative of any future investments byDriftwood Acquisitions Partners, LLC (DAP) or the results of any future investments. A complete list of past investments made by DAP is available upon request. This example should not be deemed as investment advice or a recommendation to purchase or sell any specific security. No representations or warranties whatsoever are made by DAP, Driftwood Capital LLC, any of their affiliates, or any other person or entity as to the future profitability of a Fund or the results of making an investment. Detailed information on how the data was calculated is available upon request.

 

General

All content on this page is general in nature, not directed or tailored to any particular person, and is for informational purposes only. This is neither an offer to sell nor an offer to buy limited partnership interests in a fund managed by an affiliate of Driftwood Capital LLC (each, a “Fund”). Such an offer will only be made pursuant to each Fund’s Confidential Offering Memorandum. An investment in each Fund is subject to a high degree of investment risk, including the possible loss of the entire amount of an investment in the fund. A potential investor should carefully read and review the confidential offering document, including the description of risk factors, before making an investment in a fund. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented. Neither Driftwood Acquisitions Partners LLC, Driftwood Capital LLC, or any of their advisers, officers, directors, or affiliates represent that the information presented herein is accurate, current or complete, and such information is subject to change without notice.

Statements herein that reflect projections or expectations of future financial or economic performance of an investment are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or an investment’s actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Any projections and forward-looking statements included herein should be considered speculative and are qualified in their entirety by the information and risks disclosed in the confidential offering document. Actual results for any period may or may not approximate such forward-looking statements. Prospective investors are advised to consult with their own independent tax and business advisors concerning the validity and reasonableness of the factual, accounting and tax assumptions. No representations or warranties whatsoever are made by a Driftwood Acquisitions Partners LLC, Driftwood Advisors LLC, Driftwood Capital LLC, or any other person or entity as to the future profitability or the results of making an investment in the Fund. Projected or past performance is not a guarantee of future results.

 

Footnotes

  1. The Plasencia Group, 2020
  2. JLL Dallas Lodging Market Spotlight, August 2020
  3. PwC and the Urban Land Institute: Emerging Trends In Real Estate 2021, 2020