Sheraton Old San Juan hotel and retail complex trades to new investor
JLL’s Hotels & Hospitality Group led the sales efforts for the 240-key hotel and 27,500 SF retail complex in one of the most stable lodging markets in the U.S.
Miami, Sept. 27, 2021 – JLL’s Hotels & Hospitality Group announced today that it closed the sale of the Sheraton Old San Juan, a 240-room hotel and 27,500-square-foot retail complex in the heart of Old San Juan, Puerto Rico.
JLL represented the seller, Tishman Realty, and procured the buyer, Driftwood Capital. The hotel was offered unencumbered of brand and management.
Recently renovated in 2018, the Sheraton Old San Juan offers a mix of old-world charm and modern comforts within traditional guest rooms and 42 suites. The property consists of a nine-story building housing the hotel rooms, 9,114 square feet of flexible meeting and event space, a rooftop pool, a business center, and a fitness center alongside a two-story building, which is home to some of the retail tenants, including Senor Frog’s and Walgreens.
The Sheraton Old San Juan is located at 100 Brumbaugh St. in Old San Juan, which is the top tourist and entertainment destination in Puerto Rico, offering century-old forts, Old World elegance, historic churches, and a festive atmosphere all year round. The hotel also overlooks Pier Three and the Port of San Juan, the busiest cruise terminal in the Caribbean.
San Juan’s lodging market has historically been the most stable lodging market in the United States, boasting an average occupancy of 76.3% and only a 0.36% supply CAGR between 1994 and 2019, with strong leisure demand, which has translated to incredible lodging performance for decades. San Juan is experiencing incredibly strong post-COVID recovery with airport traffic only 2.3% below 2019 levels and strongest RevPAR growth in the Americas (70.1%) totaling $218.35 for July 2021, which underpins the resilience of the market and phenomenal positioning for growth in the near to long-term.
The JLL Hotels & Hospitality team representing the seller was led by Managing Director Andrew Dickey and Vice President Maciej Polek.
“The Tishman team has experienced great execution with the asset over several volatile cycles and Driftwood stands to benefit from this institutional ownership, with several value-add levers,” said Dickey.
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Tishman Realty
With roots dating back to 1898, Tishman Realty is a vertically integrated real estate owner, developer, operator and advisor comprised of a diversified staff of experienced real estate, financial and asset management specialists, and is complemented by a technical staff of architects, engineers and construction management professionals. Tishman Realty is actively engaged in the acquisition, development and financing of all commercial real estate asset classes with a main focus on opportunistic and value add situations. To learn more, please visit: tishman.com.
About Driftwood Capital
Driftwood Capital is a vertically integrated commercial real estate investment, development, and lending platform specializing in hospitality. For more, please visit: DriftwoodCapital.com.