Driftwood Capital has revealed the successful initial closing of its latest fund, Driftwood Florida Space Coast Portfolio LP, focusing on the acquisition and development of existing and soon-to-break-ground hotel assets along Florida’s Space Coast.
Upon completion of the Westin Cocoa Beach Resort, Spa and Conference Center, the fund’s portfolio is expected to represent approximately 11% of all the hotel rooms in the Space Coast market and 62% of the area’s beachfront hotel inventory. Consisting of four large-scale beachfront assets representing brands including Marriott, Hilton and IHG, each property in the fund’s portfolio serves a unique guest segment tailored to its respective brand, according to the company.
“Since 2013, Driftwood has had a meaningful presence in Florida’s Space Coast,” said Carlos J. Rodriguez Sr., chairman/CEO, Driftwood Capital. “When we first entered this market more than 10 years ago, we recognized the untapped potential for this region to become a hub that melds business, innovation and leisure tourism. Today, as we continue to invest as a partner for growth in the Space Coast, the area continues to draw travelers and new residents as it emerges into a significant coastal destination with numerous demand drivers across a variety of sectors.”
Anticipating future growth and demand along the Space Coast, the fund’s portfolio is projected to include more than 1,200 guestrooms, 166,000 sq. ft. of meeting space and 21 food & beverage venues on 36 beachfront acres, constituting a majority of the area’s hotel beachfront inventory.
The fund’s portfolio is comprised of the following assets:
- Westin Cocoa Beach Resort (projected 502 guestrooms including 69 suites)
- Hilton Cocoa Beach (295 guestrooms)
- Element by Westin Melbourne (130 guestrooms)
- Crowne Plaza Melbourne (290 guestrooms)
The Space Coast enjoys a variety of demand generators in numerous sectors. The region’s proximity to Orlando and the increasing activities from the space industry have attracted millions of visitors every year. Today, Kennedy Space Center attracts more than 1.5 million visitors per year from around the world (according to NASA); more than 4 million cruise passengers embarked via Port Canaveral in 2022 (according to the Canaveral Port Authority); and millions more come from the Orlando MSA to visit the Space Coast’s beaches.
Increased demand is expected in the Space Coast market in the coming years. With 111 launches expected in 2024, according to Florida Lt. Governor Jeanette NunÞez, last year’s record of 72 launches is expected to be surpassed by the year’s end.
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Source: hotelbusiness.com
