Apollo Global Management has struck up a $400 million real estate investment fund to purchase, renovate and reflag full-service hotels across the US as the latest part of its global real estate drive.
The New York-based firm has formed a joint venture with Florida-based Driftwood Hospitality Management, which owns a portfolio consists of 27 hotels comprising nearly 6,000 rooms in major resort destinations and top business travel and convention markets in the US, Bahamas and Costa Rica.
Raymond Mikulich, managing director at Apollo said in a statement that the firm formed this strategic relationship with Driftwood “to capitalize on the recovering hospitality market in the US”.
Additionally, Driftwood Hospitality Management president David Buddemeyer said that the venture had already contracted to acquire $45 million of hotels with the Apollo fund's support. “Collectively, we plan to acquire up to $400 million of hotels through this relationship over the next two years,” he added.
As of 31 March, Apollo Global Real Estate manages $6.5 billion in real estate assets.