Largest hotel in Texas, Sheraton Dallas, secures $30 million mezzanine financing deal
Dallas, Texas – Driftwood Capital, through its subsidiary Driftwood Lending Partners, has arranged $30 million in mezzanine financing to help refinance the Sheraton Dallas hotel. This hotel, with 1,841 rooms, is the largest in Texas and is managed by the Chartres Lodging Group. This mezzanine loan is part of a larger financial package that includes a $270 million senior loan provided by Goldman Sachs and JP Morgan Securities. The financing agreement is flexible, featuring a two-year term with three optional one-year extensions.
“As demand for full-service hotels and dynamic meeting spaces elevates, owner/operators continue to seek favorable loan terms to capitalize on this trend with longer holding periods,” Driftwood Capital CEO and Chairman Carlos Rodriguez Sr. said in a statement. “The addition of this mezzanine loan also speaks to the need for gap financing that allows firms to continue their investment strategies while allowing us to provide continuity to the hotel industry.”
Since its inception in late 2020, Driftwood Lending Partners has been involved in over $1.4 billion in financing for various hotel ventures nationwide. The fund primarily offers mezzanine loans and preferred equity for the refurbishment of existing hotels and the construction of new ones across the United States. The Sheraton Dallas Hotel itself, built in 1959 and located in downtown Dallas, boasts over 230,000 square feet for meetings and events, houses five restaurants, 113 meeting rooms, and offers 1,100 parking spots, among other full-service amenities.
The hotel is conveniently situated near several transportation hubs. Dallas Love Field airport is about 15 minutes away, while DFW International Airport is a 30-minute drive. The Dallas Area Rapid Transit’s Pearl/Arts District Station is also located nearby. Driftwood Capital’s broader investment strategies focus on acquiring, developing, and financing hospitality projects. The company recently announced that its hotel development projects are expected to surpass $1 billion in value, with $800 million in developments either underway or planned to start in 2024.
