Only for accredited investors
Driftwood GNP US Holdings IV, LP / Driftwood GNP Ontario IV, LP
Investment in two mezzanine loans backed by four US hospitality assets
9.56% Target*
Annualized quarterly cash-on-cash1
April & May 2026
Maturity Date2
$100,000
Minimum Investment3
- Projections are (i) net of applicable fees and organizational expenses, (ii) based on applicable forward yield curves published by Chatham Financial as of the time of this Offering and (iii) assuming each of the Mezz Loans is (x) paid at maturity and not extended beyond their respective initial terms (y) performing and in compliance with the applicable loan agreements and not otherwise in monetary default. In reviewing these projections and projections set forth elsewhere herein, investors are cautioned that no assurance can be given that actual returns will meet or exceed the targeted returns (including that they may be materially lower than the targeted returns) or that actual results will otherwise meet the General Partner’s expectations or objectives. In addition, while the expected investment term is based on the respective maturity dates of the Mezz Loans, various factors, including extensions of the maturity dates of the Mezz Loans in accordance with their terms and defaults under a Mezz Loan may result in a change to the expected investment term and the financial projections included herein.
- As of October 2024 assuming both loans mature on their expected maturity date. Marriott Miami 3-Pack note is expected to mature in May 2026 while Sheraton Dallas note is expected to mature in April 2026; both subject to three (3), one-year extensions at the option of the borrower, upon satisfying certain conditions to extension. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated.
- Subject to the General Partner’s sole discretion to accept lesser amounts on an investor-by-investor basis.
The investment returns in this offering are projections and not guaranteed. They may change without notice and are subject to various factors. Investing in securities carries risks, including potential loss of principal.
Objective
Seeks to invest in four Marriott-branded hotels, three of which are located near Miami International Airport, and one located in the city center in Dallas.
Mezzanine notes
The mezzanine notes are secured by the equity ownership in the
following US hotels:
‣ Marriott Miami Airport (371 keys)
‣ Courtyard Miami Airport (301 keys)
‣ Residence Inn Miami Airport (164 keys)
‣ Sheraton Dallas Hotel (1,841 keys)
Targeted* returns1
Investors in Driftwood GNP US Holdings IV, LP / Driftwood GNP Ontario IV, LP are targeted to earn an average 9.54% annualized quarterly cash-on-cash net of fees and organizational expenses.
The description of the project listed herein is summary in nature and does not include all of the relevant and potential high degree of risks. Any person considering an investment must read and review in its entirety the private placement memorandum describing the terms and risks of investment in detail prior to making an investment. Additionally, any person considering an investment should be aware of all the risks and should consult their own investment, legal, business, tax and financial advisors with respect thereto.
The description of the project listed herein is summary in nature and does not include all of the relevant and potential high degree of risks. Any person considering an investment must read and review in its entirety the private placement memorandum describing the terms and risks of investment in detail prior to making an investment. Additionally, any person considering an investment should be aware of all the risks and should consult their own investment, legal, business, tax and financial advisors with respect thereto.
Anticipated Portfolio composition
All numerical values provided above are rounded to the nearest million for ease of presentation. These rounded figures are intended to give a clear overview and may not reflect exact amounts. For precise figures, please refer to the offering’s Investment Summary. The information contained on this slide is intended only for qualified investors who are knowledgeable about investments and the associated risks. No representations or warranties whatsoever are made by Driftwood Capital, LLC or any other person or entity as to the future profitability of investment outcomes or the results of making an investment. Both notes are subject to three (3), one-year extension at the option of the borrower, upon satisfying certain conditions to extensions, which may push back the maturity date if the option is exercised.
The description of the project listed herein is summary in nature and does not include all of the relevant and potential associated risks. Any person considering an investment must read and review in its entirety the private placement memorandum describing the terms and risks of investment in detail prior to making an investment. Additionally, any person considering an investment should be aware of all the risks and should consult their own investment, legal, business, tax and financial advisors with respect thereto. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated.
Investment Rationale
Marriot Miami 3-Pack
Sponsor invested additional equity at closing
The sponsor invested approximately $10.3M ($164K/key) to facilitate the transaction, in further commitment to the portfolio.
Compelling basis
The mezzanine loan’s exposure of approximately $151K per key may represent approximately a 76% as-stabilized LTV ratio.
High quality assets supported by ongoing renovations
We believe the portfolio may remain in strong conditions due to consistent capital investment, with $20.6M (~$24K per key) spent on renovations from 2017-2019.
Potentially robust demand drivers
Proximity to Miami International Airport and South Florida’s business environment which may make the portfolio more resilient than the broader lodging market, potentially assisted by positive NOI during 2020 and 2021 and 2022.
High potential performance
The portfolio has generated positive cash flow and as of year-end 2023, the portfolio has a 25.1% increase in RevPAR over 2019 and a combined NOI of over $11.5M (9.1% debt yield).
Sheraton Dallas
Attractive LTV financing with competitive going-in debt metrics
Driftwood’s last dollar exposure of ~$163K/key may represent an LTV ratio of ~59.8% with an expected in-place debt yield of 12.7%, and a debt service coverage ratio of 1.40x.
Compelling historical performance
The property was acquired in late 2017 for $224.5M (~$122K/key) and in 2020 completed an $84.2M (~$45.7K/key) renovation. The property’s ADR penetration subsequently increased to ~98% in 2023, compared to ~82% in 2018 pre-renovation. From 2019 to 2023 ADR, RevPAR and Net Cash Flow increased 19%, 15%, and 56%, respectively.
Increased group/banquet & catering business realized post renovation
In 2023, group business generated $41.5M in revenue with an ADR of $201. In comparison, in 2019, group rooms revenue was $31.6Mwith an ADR of $171, reflecting increases of 31% in revenue and 17% in ADR. For 2024, group revenue is expected to be ~35% higher than in 2023, potentially suggesting that the property’s ongoing improvements from the renovation may yield positive results.
The description of the project listed herein is summary in nature and does not include all of the relevant and potential high degree of risks. Any person considering an investment must read and review in its entirety the private placement memorandum describing the terms and risks of investment in detail prior to making an investment. Additionally, any person considering an investment should be aware of all the risks and should consult their own investment, legal, business, tax and financial advisors with respect thereto.
Experts Discussing the Strength of Market & Barriers to Entry
Lisa Sexton
Senior Vice President, Development Hospitality Expertise for Marriott International
Watch VideoRita Pritchett
Brevard County Commissioner for District 1 & Chairwoman for the Tourism Board of the County
Watch Video
Legal disclosure
This website is not an offer to sell or the solicitation of an offer to purchase securities. All information available in this website is general in nature, not directed to any particular person, and is for informational purposes only. This website excludes material information, including, but not limited to, risk factors to be considered by prospective investors. The information contained herein reflects the opinions and projections of Driftwood Capital, LLC as of the date of this website, which are subject to change without notice at any time. There is no obligation to update, modify, or amend the information herein or otherwise notify a recipient of these materials in the event that any information contained herein, or any opinion, projection, forecast, or estimate, changes or subsequently becomes inaccurate. The information provided herein is believed to be reliable and has been obtained from sources Driftwood Capital believes are reliable, but no representation or warranty is made, express or implied, with respect to the fairness, correctness, accuracy, reasonableness, or completeness of the information and opinions. Neither Driftwood Capital nor any of its affiliates, representatives, or executives represents that the information contained in this website is accurate, current, or complete. Driftwood Capital does not represent that any opinion or projection will be realized. For the avoidance of doubt, no investment advice is being provided through this website by Driftwood Capital or any of its affiliates (including Driftwood Advisors, LLC), representatives, or executives. Each recipient of this website should make such investigation as it deems necessary to arrive at an independent evaluation of the contents hereof and should consult its own legal, financial, and accounting advisors to determine the merits and risks of such an investment.
*Target Returns
The target returns shown in this document are hypothetical in nature, do not reflect actual results, and are not a guarantee of future results. Target returns are based on assumptions that may not prove to be accurate. There are several limitations inherent in target returns like those portrayed in this document. Additionally, a specific investor’s actual performance may differ materially from such illustrative data depending on numerous factors. No representations or warranties whatsoever are made by Driftwood Capital, its affiliates, subsidiaries, or any other person or entity regarding the future profitability of an investment vehicle or the results of making an investment. Projected or past performance is not a guarantee of future results. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements and may be worse due to various factors, including, without limitation, changes in laws, fluctuations in real estate markets, the tourism and hospitality industries, increases in costs, and adverse conditions in the credit and capital markets. Moreover, actual events are difficult to project and often depend on factors beyond the control of Driftwood Capital, its subsidiaries, and affiliates.
- Projections are (i) net of applicable fees and organizational expenses, (ii) based on applicable forward yield curves published by Chatham Financial as of the time of this Offering and (iii) assuming each of the Mezz Loans is (x) paid at maturity and not extended beyond their respective initial terms (y) performing and in compliance with the applicable loan agreements and not otherwise in monetary default. In reviewing these projections and projections set forth elsewhere herein, investors are cautioned that no assurance can be given that actual returns will meet or exceed the targeted returns (including that they may be materially lower than the targeted returns) or that actual results will otherwise meet the General Partner’s expectations or objectives. In addition, while the expected investment term is based on the respective maturity dates of the Mezz Loans, various factors, including extensions of the maturity dates of the Mezz Loans in accordance with their terms and defaults under a Mezz Loan may result in a change to the expected investment term and the financial projections included herein.
- As of October 2024 assuming both loans mature on their expected maturity date. Marriott Miami 3-Pack note is expected to mature in May 2026 while Sheraton Dallas note is expected to mature in April 2026; both subject to three (3), one-year extensions at the option of the borrower, upon satisfying certain conditions to extension which may push back the maturity date if the option is exercised. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated.
- Subject to the General Partner’s sole discretion to accept lesser amounts on an investor-by-investor basis.
The investment returns in this offering are projections and not guaranteed. They may change without notice and are subject to various factors. Investing in securities carries risks, including potential loss of principal.