The Wylie Hotel — Atlanta, GA

Brand New Boutique Hotel in Atlanta’s Fastest Growing Submarket

Join us in our latest hotel acquisition investment, The Wylie Hotel, a brand new 111-key boutique hotel located in Atlanta’s Midtown/Old Fourth Ward neighborhood. As an open and operating hotel capturing significant leisure and business travel, The Wylie is poised to deliver attractive quarterly returns.

11.7%

Projected Returns

15%

Projected IRR

$50K

Minimum Investment

5-7 Years

Anticipated Term

Deal Highlights

Brand New Trophy Asset

Opened in May 2021, The Wylie offers a modern boutique experience in a beautifully restored, architecturally significant structure

Boutique Hotel

One of a handful of true independent boutique hotels in the Midtown submarket, operated by experienced niche hotel operator Mainsail

Strong Location

Located in one of the world’s top 20 cities with more than 40 million square feet of office space located within 1.5 miles of the hotel, as well as public transit access within one mile

Robust Lodging Market

The Wylie benefits from strong corporate presence including several major recent relocations, resulting in demand (5.0% CAGR) outpacing supply (2.1% CAGR) for eight of the last ten years. This demand led Midtown to capture the highest average daily rates (ADR) of any Atlanta submarket by more than 16% in 2019

Significant barriers to entry

Minimal if any new competitive supply in the submarket; there is currently only one existing, 94-key hotel in the hotel’s competitive set

Highly Amenitized Property

Featuring Mrs. P’s Bar & Kitchen, serving breakfast lunch and dinner; 24-hour fitness center with Peloton bikes; Garden Terrace; In-Room Dining; Valet Parking and complimentary Wi-Fi

PROJECTED INVESTOR DISTRIBUTIONS SCHEDULE

 

Investors are expected to receive distributions on a quarterly basis. For the projected investment hold period of five years, distributions are anticipated as follows (based on a percentage of the investment).

2022

3%

2023*

17%

2024

12%

2025

12%

2026**

136%

*Includes proceeds from refinance

**Including proceeds from sale

Market Highlights

Top 20 World Cities by GDP

Atlanta is one of the largest and most economically important cities in the United States, ranking in the top 20 world cities by GDP with $397 billion (2019) and serves as a headquarter home for 16 Fortune 500. The MSA is currently the fourth fastest-growing MSA in the United States, adding over 730,000 new residents between 2010 and 2019. Following a Covid downturn, Metro Atlanta has now regained 81% of the jobs lost during the pandemic, with more corporations relocating each month. 

Major Transportation and Distribution Center

Atlanta’s airport, Hartsfield-Jackson International, is the nation’s busiest airport based on number of passenger movements, with air service provided to almost every major U.S. city.

Strong Convention Center Market

As one of the top five convention center markets in the U.S., Atlanta attracts some of the largest conventions in the nation. The 3.9 million sf Georgia World Congress Center offers the second-largest exhibit hall in the U.S., along with additional meeting space at the Atlanta Merchandise Mart, Apparel Mart, Inforum, and Mercedes-Benz Stadium, all within a one-quarter mile radius.

Expanding Film Industry

Georgia is now the #1 filming location in the world, according to Film L.A. Pre-pandemic, Georgia received $2.9 billion from the TV and Film industry in the fiscal year 2019, up 32% from 2016. Despite the pandemic during the fiscal year 2021, the industry set a new record with $4 billion in direct spending on productions in the state. With an industry-leading tax credit program, a ready workforce and a business-friendly attitude, Georgia is positioned to continue attracting more productions in the coming years.

Strong Class A Office Market

Midtown continues to attract large corporations and maintain the highest rates in the Atlanta metro area. The submarket has more than 29 million square feet office space of which over 23 million are Class A. Midtown has benefited from an influx of tech-oriented tenants, including IT divisions of major corporations and startups. Rents in the submarket are the highest in the metro at $39.99/SF, a $13 premium over the market. Major tenants include Blackrock, McKinsey & Co, MailChimp and WeWork, all located within walking distance of the Hotel.

Major Relocations and Expansions into the Submarket from National Players

Attracted by the region’s low cost of doing business and specifically for Midtown, for its true “live-work-play” community orientation, the submarket has attracted major corporations including VISA, Norfolk Southern, Google, Microsoft and Anthem, Inc.

Atlanta BeltLine/Ponce City Market

The BeltLine is Atlanta’s newest outdoor space and is comprised of 33 miles of multi-use, urban trails and walkways that connect people in the city to open green space and parks. Along the BeltLine’s Eastside Trail is Ponce City Market, one of the largest adaptive reuse projects in the South, featuring more than 2.1 million SF of retail, restaurants, office and apartments. The Wylie Hotel’s strategic location across from the Ponce City Market and the Eastside Trail allows the hotel to drive rate and capture market share

Top Academic Presence

Midtown’s collection of top-ranked academic institutions has turned Midtown Atlanta into a major technology and innovation hub. There are 40,000+ students enrolled in Midtown institutions and universities including Georgia Tech, Emory University, Georgia State University, and Savannah College of Art and Design.

Piedmont Park/Atlanta Botanical Garden

Midtown is home to 300+ acres of green space and multi-use trails. Piedmont Park is a 200-acre park that is the focal point of Atlanta’s Midtown community and hosts hundreds of events each year, including several music and arts festivals. The Atlanta Botanical Garden, voted one of the Best Gardens in America, is a major city attraction located within Piedmont Park and offers 30+ acres of award-winning gardens.

Significant new development within 0.5 miles of the hotel

370,000 square feet of Class A office space with major tenants such as BlackRock, Chick-fil-A, McKinsey & Co, PagerDuty Inc, Slalom LLC, and WeWork delivered in 2020

An additional 600,000 square feet comprised of office space, a 140-key hotel, 350 apartments, and 50,000 square feet of retail currently under construction

Ponce City Market also filed for an expansion of additional mixed-use development totaling 500,000 square feet in February 2021.

Who we are

Driftwood Capital is an innovative investment business built on the solid foundation of a most trusted name in hospitality. Experts in acquisitions, development and lending source, underwrite, structure and close investments with major hotel flags, all secured by sponsor capital. Side by side with Driftwood Hospitality Management, Driftwood Capital asset manages and oversees operations to deliver the best risk-adjusted returns in hospitality.

Driftwood Capital principals have a substantial track record, transacting on more than $5 billion in hospitality assets through various affiliated management and ownership entities.

The firm’s proprietary DealDirect solution takes the risk out of the investment process; the entire transaction is executed upfront using sponsor capital, and then offered on a deal by deal basis to investors, allowing each to create a customized portfolio of investments that meets their needs.

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 by Driftwood 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.