Sheraton Old San Juan hotel and retail complex trades to new investor

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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