Driftwood Capital Acquires Hyatt Regency Fairfax Hotel in Virginia
Driftwood Capital, a Miami-based real estate investment company, has acquired the Hyatt Regency Fairfax, a 316-key hotel in Fairfax, Va., and will rebrand the property as a Hilton to be managed by Driftwood Hospitality Management.
A joint venture between Songy Highroads and the Carlyle Group, which refinanced the property in 2019 for $26.2 million, were the sellers. The price was not disclosed.
“Our goal remains constant. We want to continue acquiring and developing assets in high-growth markets, targeting properties that we can enhance and create value through our experienced approach as an owner-operator,” Johannah Rodriguez, Driftwood Capital’s managing director of acquisitions, told Commercial Observer. “Location within every market we enter is an important factor we take into account, which allowed this property to fit into our investment criteria based off the nearby presence of office space occupied by a multitude of industries.”
Located at 12777 Fair Lakes Circle, nearby I-66 and US Route 50, the 14-story hotel is less than 30 minutes from Washington, D.C., and nearly 26 million square feet of office space is situated within a five-mile radius.
Nearby tenants include Boeing, Northrop Grumman, General Dynamics and Fair Oaks Medical Center. It’s also within walking distance of the Fair Lakes shopping center.
Originally built in 1989, the Hyatt Regency Fairfax underwent a $14 million renovation in 2016 and features a state-of-the-art fitness center, an indoor pool, a full-service restaurant, and approximately 10,000 square feet of meeting space.
“This hotel presented Driftwood Capital and its investors a unique value-add opportunity to realize significant gains in top-line performance once a new management team is in place that capitalizes on the hotel’s superior location and physical condition,” Carlos Rodriguez Sr., Driftwood Capital’s CEO, said in a statement.
Driftwood Capital’s portfolio now includes 21 full-service hotels and seven new, ground-up hotel developments, though this is its first in Northern Virginia.