Driftwood Acquisitions & Development has bought Marriott Mission Valley, a 353-key San Diego hotel. The acquisition represents the company’s entry into the California market.
“We selectively acquire high-quality hotel assets with our own capital, so we always keep risk in mind whenever we move towards our next acquisition,” Carlos Rodriguez, DAD chairman & CEO, told Commercial Property Executive. “After evaluating the market demand and the property’s historical performance, it was clear the Marriott Mission Valley hotel would make an appealing addition to our portfolio for investors to take part in.”
He added that Marriott Mission Valley recorded strong year-over-year growth since a renovation to its common areas in 2017. DAD will be implementing a multimillion-dollar capital improvement program, encompassing full guest room renovations and further upgrades to the outdoor pool area.
Located at 8757 Rio San Diego Drive and build in 1988, the property boasts 37,000 square feet of meeting and event space. Amenities including a business center, fitness center, outdoor swimming pool and convenience store.
DAD also intends to develop a 130,000-square-foot second hotel on a roughly 1.8-acre parcel on the southwest corner of the same site, sometime in 2021. The 150-key property is slated to offer 5,000 square feet of meeting space and a fitness center.
“San Diego has become a veritable destination for both leisure and corporate travelers, especially the Mission Valley submarket. We identified an asset that was surrounded by a variety of demand drivers that would consistently attract year-round visitors, which is why we’re also considering developing a second hotel on the same site to serve guests,” Rodriguez said.
San Diego’s appeal
Mission Valley has become one of the most popular regions in San Diego, located 10 minutes away from San Diego International Airport and major attractions.
In 2018, San Diego saw nearly 36 million visitors who spent $11.5 billion during their stay, according to DAD’s market research. Rodriguez said the submarket is also recording renewed growth through a number of projects that have either been completed, under construction or in the planning stages, which are expected to add significant office and retail, but no new net hotel inventory.
In August, a joint venture between DAD and Merrimac Ventures secured $28.5 million for the construction of a Hilton hotel in Fort Lauderdale, Fla.
Image courtesy of Driftwood Acquisitions & Development