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

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.

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