Driftwood Capital, a vertically integrated commercial real estate firm providing superior risk-adjusted returns in hospitality, announced that it has acquired The Scottsdale Resort at McCormick Ranch, a sprawling, hacienda-style resort with 326 guestrooms located on 16 lush acres in one of Arizona’s most exclusive planned communities.
Built in 1976 as the first true conference center resort in the country, the AAA Four-Diamond resort is located next to two 18-hole championship golf courses and boasts 90,000 square feet of indoor-outdoor meeting and event space, two outdoor swimming pools, a spa and fitness center, three food and beverage outlets, and an on-site UPS store. It is located within the planned community of McCormick Ranch, an affluent neighborhood featuring luxury homes, high-end shopping, golf courses, corporate headquarters and numerous walking and running paths.
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Driftwood Capital plans to complete a multimillion-dollar renovation that will convert the Hotel to a Curio Collection by Hilton, a global upscale brand of one-of-a-kind hotels and resorts handpicked for their distinct character. The renovation will completely transform all guest-facing areas of the Hotel, including new food and beverage concepts, a complete revamp of the resort-style pool, and a new and expanded spa and fitness center.
Accredited investors will have the opportunity to invest in the hotel through Driftwood Capital’s DealDirect investment platform beginning on in the second quarter of 2022.
“The Scottsdale Resort at McCormick Ranch presented Driftwood with a rare opportunity to acquire a one-of-a-kind, institutional-quality hotel in one of the country’s top tourist markets,” said Johannah Rodriguez, Managing Director of Acquisitions with Driftwood Capital. “This property gives our team a ‘blank canvas’ on which to project our long-term vision for a four-star Sonoran resort offering an upscale retreat for the leisure traveler and unrivaled facilities and services for the group/business traveler as well.”Added Carlos Rodriguez Sr., CEO of Driftwood Capital, “Scottsdale’s demand drivers – the year-round warm temperatures, elite corporate business community, and growing population – all factored into why this was an appealing offering. Ultimately, we saw an opportunity to acquire a truly unique hotel asset with considerable upside potential, located in one of the most desirable pockets of one of the top real estate markets in the country. This met all our rigorous investment criteria, and we’re delighted to take the next steps in realizing this property’s true potential.”
Renovations of the hotel will commence in in the first half of 2022 and will focus on transforming all guest-facing areas of the hotel, including all guest rooms in the McCormick Building and The Stillman Building, which has not been renovated since 2003. The company’s management arm, Driftwood Hospitality Management, will oversee property renovations and operations.
The Scottsdale Resort at McCormick Ranch is ideally located in the heart of Scottsdale’s greenbelt, a premier submarket in the Phoenix metro area. The resort is located within minutes of Scottsdale’s top attractions including world-class championship golf courses, sporting venues, Cactus League Spring Training facilities (home of the Arizona Diamondbacks and Colorado Rockies Major League Baseball franchises), WestWorld, Old Town, and renowned shopping and dining at Scottsdale Fashion Square. The property is just a 15-minute drive from Phoenix Sky Harbor International Airport, ranked the nation’s top airport in 2019, allowing convenient access for group and business travelers seeking a southwestern resort experience.
Driftwood Capital’s investment strategies include hospitality acquisition, development and lending. Award-winning properties in its portfolio include the Canopy Tempe and Canopy West Palm Beach; the Wylie Hotel in Atlanta; the Marriott Mission Valley in San Diego; the Hilton Fairfax in Virginia; and the Margaritaville Lake of the Ozarks. It is also developing the $300 million Westin Cocoa Beach and the $185M Riverside Wharf/Dream Hotel in Downtown Miami, both in Florida