Apollo Global Management has completed the acquisition of a portfolio of 18 European hotels from Canadian investor Ivanhoé Cambridge, which is exiting the hospitality sector.
Apollo Global Management has completed the acquisition of a portfolio of 18 European hotels from Canadian investor Ivanhoé Cambridge, which is exiting the hospitality sector.
The terms of the transaction by Apollo European Principal Finance Fund II were not disclosed by the parties but the investment volume has been widely reported to be €425 mln.
The investment includes hotels located in Austria (1), Belgium (1), France (1), Germany (11), the Netherlands (2) and Spain (2) operated under the IHG brands of Crowne Plaza, Holiday Inn, and Holiday Inn Express.
Roger Orf, a partner of Apollo EPF II as well as head of Apollo European real estate, said, 'This acquisition builds on the strong foundation of successful investments Apollo’s funds have made in the hospitality sector for nearly two decades. Over the past several years, the first Apollo European Principal Finance fund acquired and successfully realised gains on investments in several large European hotel properties through non-performing loan transactions.
'It’s our view that the European market will continue to generate opportunities in the hotel and other commercial property sectors which are consistent with our strategy of focusing on complex and illiquid situations where we can work with sellers to provide solutions. We are pleased to have been able to build upon our strong relationship with Ivanhoé Cambridge to make this transaction a success and look forward to collaborating on other projects in the future.'
JLL brokered the transaction. Hogan Lovells provided legal counsel to Ivanhoé Cambridge and Ashurst LLP was legal counsel for Apollo on the transaction.
