Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Industry NewsDriftwood Capital Intensifies Focus on Lifestyle & Luxury Sector With New Division...

Driftwood Capital Intensifies Focus on Lifestyle & Luxury Sector With New Division and Investment Fund

In February, Driftwood Capital launched its Driftwood Lifestyle & Luxury Division (DLLUX), enhancing management, investment, and development services and initiatives within the luxury, lifestyle, and branded residences sector. Since 2019, the firm has invested more than $2 billion in that sector with developments such as the Westin Resort & Spa Cocoa Beach, Dream Miami, Canopy by Hilton West Palm Beach, and Canopy by Hilton Tempe. At launch, DLLUX assumed oversight of 12 assets that had been managed by Driftwood Hospitality Management, eight of which are also owned by Driftwood-sponsored funds. 

In an exclusive interview with LODGING, Managing Director, Luxury and Lifestyle Investments Alinio Azevedo, who leads DLLUX, described Driftwood Capital’s thoughtful expansion within the sector: “Driftwood had established itself primarily in upper-upscale branded hotels but strategically expanded into the lifestyle sector through both development and acquisitions since 2015. This evolution led to the successful management of 12 lifestyle and resort assets. The expansion into the luxury and branded residences sector was part of a broader strategy to capitalize on the growing demand for immersive and high-end travel experiences. It is also part of our strategy to diversify our portfolio into the fastest-growing, and most resilient, segment of the industry. Lastly, it is also a function of requests from our existing investor base to place capital in this segment.” 

Azevedo, the former CEO of Aspen Hospitality—which develops, owns, and manages luxury hotels, clubs, and branded residences—explained that the sector has “emerged stronger post-pandemic” due to numerous factors including demand from high-net-worth individuals (HNWIs), experiential-driven travel demand, supply constraints, and pricing resilience. “Institutional investors remain bullish on high-end hospitality real estate, citing limited new supply, high barriers to entry, and pricing power as key investment drivers,” Azevedo said. “ESG-focused luxury developments are also gaining traction as sustainability becomes a critical consideration.” 

He identified the following distinct trends in luxury & lifestyle and branded residences, respectively: 

  • Luxury & Lifestyle Hotels: “RevPAR and ADR in the luxury segment have outpaced broader market growth. ADRs for luxury hotels increased 29 percent from 2019 to 2023, with properties frequently exceeding $1,000 per night. High-end resorts, wellness-focused properties, and experiential travel continue to see sustained demand from affluent travelers.” 
  • Branded Residences: “The branded residence sector has expanded rapidly, with global supply growing 160 percent over the past decade. Demand is driven by UHNWIs (ultra-high-net-worth individuals) and HNWIs seeking turnkey, serviced living experiences, with key growth markets in North America, the Caribbean, and select international gateway cities. Major hotel groups, including Four Seasons, Ritz-Carlton, and Aman, continue to expand their branded residential pipelines to meet demand.” 

In addition to the operational consolidation, Driftwood will be launching a dedicated investment fund targeting markets across the United States and select international markets that fit the fund’s criteria. “The Driftwood Lifestyle & Luxury Fund (DLLX) is focused on both ownership and management,” said Azevedo, who oversees the fund. “The fund is dedicated to acquiring, developing, and lending on luxury and lifestyle hospitality assets, including branded residential properties.” 

Crafting the kinds of guest experiences appropriate to the sector, Driftwood’s management division plays a key role in optimizing the DLLUX portfolio’s performance. “Travel is evolving toward more immersive and bespoke experiences,” noted Azevedo, who explained that Driftwood’s approach focuses on: 

  • Curating high-potential markets that appeal to affluent travelers seeking luxury experiences, while benefiting from supply-demand imbalances and favorable operating and development costs. 
  • Investment in experiential properties, focusing on high-end design, immersive amenities, and strong brand partnerships that cater to modern travelers’ desires for personalized services, meaningful travel experiences, and ability to connect to local communities. 
  • Branded residential components, which enhance returns while offering unique, service-oriented living experiences. 
  • Technology-driven operations, leveraging Driftwood’s proprietary Domino platform for real-time data and analytics to optimize hotel performance. 
George Seli
George Seli
George Seli is the editor of LODGING.

RELATED ARTICLES

Marriott International Signs Seven-Hotel Deal With Ventive Hospitality

MUMBAI, Indiax-Marriott International, Inc. announced it has signed an agreement with Ventive Hospitality to open seven hotels as part of a portfolio deal comprising...

This Week’s Comings & Goings

Davidson Hospitality Group announced the appointment of Jason Reader as chief operating officer. Read more. Highgate announced the appointment of Pete Sams as president. Read...

Duetto and The Hotels Network Announce Strategic Partnership

SAN FRANCISCO, California—Duetto and The Hotels Network (THN), a Lighthouse company, announced a strategic partnership that enables hoteliers to boost direct bookings and optimize...

Marcus & Millichap Arranges Sale of Element Bentonville

BENTONVILLE, Arkansas—Marcus & Millichap announced the sale of Element by Westin, a 107-room four-floor hotel property located in Bentonville, Arkansas. "Element Bentonville, an institutional-grade asset,...

Crestline Adds The Well House Hamilton to Its Management Portfolio

FAIRFAX, Virginia—Crestline Hotels & Resorts LLC has been selected by Vision Realty Group in partnership with Ashley Builders Group to manage The Well House...

Atrium Hospitality Announces Launch of AtriumRISE Training Program

ALPHARETTA, Georgia—Atrium Hospitality announced the debut of AtriumRISE, the company’s hotel general manager development program. Seven assistant general managers are participating in the nine-month...