CORAL GABLES, FL—Driftwood Capital has rebranded itself to emphasize its expansion beyond the hospitality industry. The former Driftwood Acquisitions & Development is preparing for the future, says its CEO Carlos Rodriguez Sr.
“We’ve grown this network of investors and our platform and way of doing business,” Rodriquez tells GlobeSt.com. “And we realized that it has a lot of potential for future growth in different areas. By rebranding as Driftwood Capital, preparing ourselves to or create new platforms on a going forward basis to allow us to continue to grow and diversify.”
Rodriguez notes that Driftwood’s network of investors—now numbering more than 700—thinks of the firm as being hotel experts, but they have other investments as well. He says the more Driftwood can open up its platform and serve investors in other areas, the better it can service its clients. He says “Driftwood Capital” is a better name for what the company plans to do in the future.”
Funds raised by Driftwood are strictly for deals in the US and its territories, Rodriguez says, but the firm may contemplate doing business outside the US in the future. He describes Driftwood’s investors as being active, high-net-worth investors. Driftwood Capital is targeting development and acquisition deals across the country in the $30 million to $150 million range. The company can also take on larger projects, such as its $250 million, 502-room oceanfront Westin Resort in Cocoa Beach, Fla. Through its mezzanine lending division, the company is issuing loans in the $3 to $50 million range. Rodriguez says the new lending platform helps fill a growing niche for small- to mid-sized hotel loans.
“Our network is growing every day,” he says. “That’s the strength of our company and our platform and we continue to cultivate it.” Rodriguez also says Driftwood has several strategic partnerships in the works, but he’s not ready to reveal details.
Like the entire world, Driftwood will be feeling the effects of the COVID-19 pandemic. Rodriquez says it’s definitely of concern, but it will eventually pass. “These are tragedies, but at the end of the day, it will be back to business as usual at some point in time. It will definitely have impact and we are seeing it from group cancellations. The cruise industry is being affected and that has ramifications on us. We are not exempt from it.”