Driftwood Capital Secures $85 Million in Preferred Equity for Portfolio Consolidation

Deal News | Apr 23, 2025 | Paul Hastings

Driftwood Capital Secures $85 Million in Preferred Equity for Portfolio Consolidation

In a significant transaction in the hospitality sector, ACORE Capital has provided $85 million in preferred equity financing to Driftwood Capital for a portfolio consolidation endeavor valued at $1.2 billion. This strategic consolidation includes 18 properties under well-known brands like Hilton, Marriott, and Margaritaville, comprising over 4,200 rooms spread across 10 US states. The legal advisory for the transaction was led by Paul Hastings LLP, with partners Eric Schwitzer, Rick Kirkbride, and Pablo Clarke at the helm, supported by a team of associates and a paralegal. Paul Hastings, renowned for its elite legal teams, continues to provide high-level legal services to leading investment banks and asset managers globally.

Sectors

  • Hospitality
  • Finance
  • Legal Services

Geography

  • United States – The portfolio consolidation involves hotels located across 10 states in the United States.

Industry

  • Hospitality – The transaction involves a portfolio consolidation of 18 hotels under major brands like Hilton, Marriott, and Margaritaville.
  • Finance – The deal includes financial components such as ACORE Capital's $85 million preferred equity financing.
  • Legal Services – Paul Hastings provided legal advisory services for the financing transaction.

Financials

  • $85 million – Preferred equity financing provided by ACORE Capital to Driftwood Capital.
  • $1.2 billion – Overall value of the hotel portfolio consolidation deal.

Participants

NameRoleTypeDescription
Paul Hastings LLPLegal AdvisorCompanyA premier law firm providing legal advisory for the financing transaction.
ACORE CapitalFinancierCompanyProvided $85 million in preferred equity financing for the portfolio consolidation.
Driftwood CapitalTarget CompanyCompanyEngaged in a $1.2 billion hotel portfolio consolidation involving 18 properties.
Hilton, Marriott, MargaritavilleBrandsCompanyHotel brands under which the 18 consolidated hotels operate.