Driftwood Capital Intensifies Point of curiosity on Everyday life & Luxury Sector With Novel Division and Funding Fund

In February, Driftwood Capital launched its Driftwood Everyday life & Luxury Division (DLLUX), making improvements to administration, funding, and constructing products and companies and initiatives in some unspecified time in the future of the posh, standard of living, and branded residences sector. Since 2019, the agency has invested larger than $2 billion in that sector with inclinations equivalent to the Westin Resort & Spa Cocoa Coastline, Dream Miami, Conceal by Hilton West Palm Coastline, and Conceal by Hilton Tempe. At open, DLLUX assumed oversight of 12 sources that had been managed by Driftwood Hospitality Administration, eight of which might maybe well be also owned by Driftwood-backed funds. 

In a typical interview with LODGING, Managing Director, Luxury and Everyday life Investments Alinio Azevedo, who leads DLLUX, described Driftwood Capital’s considerate growth in some unspecified time in the future of the sector: “Driftwood had established itself essentially in upper-upscale branded hotels but strategically expanded into the design in which of life sector through both constructing and acquisitions since 2015. This evolution resulted in the a success administration of 12 standard of living and resort sources. The growth into the posh and branded residences sector used to be portion of a broader technique to capitalize on the increasing demand of for immersive and excessive-discontinuance commute experiences. Moreover it is a ways portion of our technique to diversify our portfolio into the fastest-increasing, and most resilient, segment of the replace. Lastly, it is a ways on the total a characteristic of requests from our existing investor unsuitable to space capital on this segment.” 

Azevedo, the feeble CEO of Aspen Hospitality—which develops, owns, and manages luxury hotels, clubs, and branded residences—explained that the sector has “emerged stronger post-pandemic” due to rather a range of components along side demand of from excessive-rep-worth folk (HNWIs), experiential-pushed commute demand of, present constraints, and pricing resilience. “Institutional merchants dwell bullish on excessive-discontinuance hospitality accurate property, citing restricted new present, excessive obstacles to entry, and pricing energy as key funding drivers,” Azevedo acknowledged. “ESG-centered luxury inclinations are also gaining traction as sustainability becomes a excessive consideration.” 

He identified the next certain inclinations in luxury & standard of living and branded residences, respectively: 

• Luxury & Everyday life Motels: “RevPAR and ADR in the posh segment have outpaced broader market snort. ADRs for luxury hotels increased 29 p.c from 2019 to 2023, with properties continuously exceeding $1,000 per night. High-discontinuance resorts, wellness-centered properties, and experiential commute continue to sign sustained demand of from affluent vacationers.” 

• Branded Residences: “The branded space sector has expanded mercurial, with world present increasing 160 p.c over the past decade. Query of is pushed by UHNWIs (ultra-excessive-rep-worth folk) and HNWIs in search of turnkey, serviced living experiences, with key snort markets in North The united states, the Caribbean, and resolve world gateway cities. Famous hotel groups, along side Four Seasons, Ritz-Carlton, and Aman, continue to amplify their branded residential pipelines to meet demand of.” 

As nicely as to the operational consolidation, Driftwood launched a devoted funding fund concentrating on markets all the design in which throughout the United States and resolve world markets that fit the fund’s standards, with deliberate capital deployments of over $3 billion. “The Driftwood Everyday life & Luxury Fund (DLLX) is centered on both ownership and administration,” acknowledged Azevedo, who oversees the fund. “The fund is devoted to buying, developing, and lending on luxury and standard of living hospitality sources, along side branded residential properties.” 

Crafting the sorts of guest experiences appropriate to the sector, Driftwood’s administration division performs a key characteristic in optimizing the DLLUX portfolio’s performance. “Run is evolving in direction of extra immersive and bespoke experiences,” illustrious Azevedo, who explained that Driftwood’s manner focuses on: 

• Curating excessive-potential markets that charm to affluent vacationers in search of luxury experiences, whereas making doubtlessly the most of present-demand of imbalances and favorable working and constructing prices. 

• Funding in experiential properties, focusing on excessive-discontinuance form, immersive amenities, and solid trace partnerships that cater to in model vacationers’ wishes for personalised products and companies, indispensable commute experiences, and skill to connect with local communities. 

• Branded residential components, which complement returns whereas offering bizarre, service-oriented living experiences. 

• Abilities-pushed operations, leveraging Driftwood’s proprietary Domino platform for accurate-time knowledge and analytics to optimize hotel performance.