Driftwood Capital, through its lending fund Driftwood Lending Partners, provided $35 million in mezzanine financing for the refinancing of the Sheraton Dallas Hotel, Texas’ largest hotel with 1,841 keys and more than 230,000 square feet of meeting space. The mezzanine loan is part of a broader refinancing by the borrower, a joint venture sponsored by Chartres Lodging Group.
The transaction includes the full replacement of a 2024 $270 million CMBS loan with a new $300 million senior loan originated by Goldman Sachs and JPMorgan Chase Bank. In tandem, DLP upsized its original $30 million mezzanine loan to $35 million. The two-year loan includes three, one-year extension options.
“This refinancing strengthens the borrower’s capital structure as group and business travel fuel demand in metro Dallas,” Scott Melby, vice president of capital markets at Driftwood Capital. “The hotel’s advantageous location, coupled with sustained commercial travel and a recovering convention segment, position the Sheraton Dallas for strong operational performance and long-term value creation.”
The Sheraton Dallas hotel includes more than 230,000 square feet of meeting and pre-function space, five onsite restaurants, 113 meeting rooms and 1,100 parking spaces with a suite of full-service amenities.
Situated in the City Center District of Dallas, the hotel is found near multiple transit hubs providing direct access to the hotel. Dallas Love Field is approximately 15 minutes away, with DFW International Airport about a 30 minute-drive from the property. Dallas Area Rapid Transit’s Pearl/Arts District Station is also located across the property, providing ease of access to the greater DFW metro area for guests.