Full-Service Hotel in Cocoa Beach, FL
- Background: In September 2013, Driftwood purchased the 296-room Hilton Cocoa Beach property. The property required an extensive capital expenditure of $8 million, resulting in a total investor contribution of $ 11.05 million (inclusive of closing costs/reserves). The property suffered from a deteriorated condition and had lost market share to its competitive set.
- Action: We completed the renovation in five months at budget. During the first year of the investment, the NOI more than doubled to $2.57 million, surpassing initial underwriting expectations by 10.4%.
- Results: In May 2016, we sold the property at a valuation of $52.26 million ($176,554/key), generating a 61.9% IRR and 3.5x equity multiple for its investors.