In February, Driftwood capital Launched its Driftwood Lifestyle & Luxury (DLLUX) division, improving management, investment and development services and initiatives in the luxury, lifestyle and brand residences. Since 2019, the company has invested more than $ 2 billion in this sector with developments such as the Westin Resort & Spa Cocoa Beach, Dream Miami, a canopy of Hilton West Palm Beach and a canopy of Hilton Temple. During the launch, DLLUX assumed the surveillance of 12 assets which had been managed by Driftwood Hospitality Management, of which eight also belong to funds sponsored by Driftwood.
In an exclusive interview with ACCOMMODATIONDirector General, Luxury and Living Style Investments, Alinio Azevedo, who leads DLLUX, described the thoughtful expansion of Driftwood Capital in the sector: “Driftwood was mainly established in hotels higher than the upper scale, but strategically extended in the management of lifestyle and life networks and rhythmslets. Part of a wider strategy to capitalize on the growing demand for immersive and high -end travel experiences.
AZEVEDO, the former CEO of Aspen Hospitality – who develops, has and manages luxury hotels, clubs and brand residences – explained that the sector has “emerged stronger post -country” due to many factors, in particular supply constraints and termination in terms of experiences and the termination of prices. “Institutional investors remain optimistic about high -end hotel real estate, citing a new limited offer, high obstacles to entry and pricing power as key investment engines,” said Azevedo. “ESG luxury developments are also gaining ground as sustainability becomes a critical consideration.”
He identified the following distinct trends in luxury and lifestyle and brand residences, respectively:
- Luxury and lifestyle hotels: “Revpar and ADR in the luxury segment have exceeded the growth of the larger market. ADRs for luxury hotels increased from 29% from 2019 to 2023, properties frequently exceeding $ 1,000 per night. High-end stations, well-being properties focused on well-being and experiential trips continue to see the sustained demand for tributaries. ”
- Brand residences: “The brand residence sector has grown rapidly, with a global offer of 160% in the last decade. Pipelines to meet demand. »»
In addition to operational consolidation, Driftwood has launched an investment fund dedicated to targeting markets across the United States and selecting international markets that meet the fund criteria, with planned capital deployments of more than $ 3 billion. “The Driftwood Lifestyle & Luxury Fund (DLLX) focuses both on property and management,” said Azevedo, who supervises the fund. “The fund is dedicated to acquisition, development and loans on luxury and lifestyle hospitality, including brand residential properties.”
Creating the types of experiences of customers appropriate to the sector, the Driftwood management division plays a key role in optimizing the DLLUX portfolio. “Travels evolve towards more immersive and tailor -made experiences,” noted Azevedo, who explained that Driftwood’s approach focuses on:
- Staration of high potential markets This call for wealthy travelers looking for luxury experiences, while benefiting from favorable imbalances in favorable supply and development costs.
- Investment in experienced propertiesBy focusing on high -end design, immersive equipment and solid brand partnerships that are aimed at modern travelers’ desires for personalized services, significant travel experiences and the ability to connect to local communities.
- Brand residential componentswhich improves yields while providing unique and service -oriented life experiences.
- Technology -oriented operationsBy taking advantage of the Domino owner platform of Driftwood for real-time data and analyzes to optimize hotel performance.