Miami-based firm enters California market with $85.7M Marriott hotel acquistion

Driftwood Acquisitions and Development acquired the Marriott Mission Valley in San Diego and plans to build another hotel on the same site

Marriott Mission Valley in San Diego
Marriott Mission Valley in San Diego

Miami-based Driftwood Acquisitions and Development entered the California market by acquiring a Marriott hotel in San Diego for $85.7 million.

Driftwood paid just under $243,000 per key for the 353-key Marriott Mission Valley and plans to develop a second hotel on the same site.

The Miami-based firm is soliciting accredited investors to co-invest in the San Diego hotel. Driftwood acquires hotels with its own capital and installs new management, then invites clients to co-invest at least $50,000.

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Built in 1988, Marriott Mission Valley has more than 37,000 square feet of space for meetings and events, a restaurant, lounge, gym, outdoor swimming pool, business center and convenience store.

Since a 2017 renovation of the common areas at the San Diego hotel, “Marriott Mission Valley has demonstrated strong year-over-year growth,” Carlos J. Rodriguez, chairman and chief executive officer of Driftwood, said in a prepared statement.

Nearly 36 million tourists visited San Diego last year and spent $11.5 billion during their stay, according to Driftwood.

Driftwood has proposed building a 150-key hotel on a 1.75-acre portion of the 7.4-acre Marriott Mission Valley property at 8757 Rio San Diego Drive. Construction of the second hotel is expected to start in 2021. – Mike Seemuth