Driftwood, Apollo ink $400 million JV

Driftwood Hospitality Management (DHM) has announced a US$400 million joint venture with a real estate investment fund managed and advised by affiliates of Apollo Global Management to purchase, renovate and reflag full-service hotels across the United States over the next two years.

DHM President David Buddemeyer said the JV has already contracted to acquire US$45 million of hotels. It includes the purchase and renovation of a full-service hotel in the Midwestern United States, which is currently under contract and will close in six to eight weeks, according to Brian Quinn, executive vice president of development and principal with DHM, which will own and manage these properties along with Apollo.

Quinn added that DHM is open to a variety of different transactions, but they are looking to acquire full-service hotels with at least 150 rooms that are in need of renovation and have the potential to be repositioned. Eventually the fund may look globally, but for right now, acquisition is focused in North America, Quinn said.

DHM, North Palm Beach, Florida, currently has a portfolio consisting of 27 hotels and more than 5,900 rooms in major resort destinations and top business travel and convention markets in the United States, the Bahamas and Costa Rica.

Apollo Global Real Estate’s investment professionals manage US$6.5 billion in real estate assets as of March 31, 2011.