Institutional Operator Closes Off-Market Deal in Partnership with Apollo Funds, Capitalizing on Tampa’s Strong Hospitality Market and Redevelopment Boom
Newbond Holdings, a vertically integrated real estate investment and operating platformfounded by Neil Luthra and Vann Avedisian, announced the acquisition of the Westin Tampa Waterside hotel in partnership with investment funds (the “Apollo Funds”) managed by an affiliate of Apollo Global Management, Inc (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”).
Newbond and the Apollo Funds acquired the 309-key trophy hotel asset, located inDowntown Tampa, through a long-term direct relationship with the seller.Building on a recent $17 million renovation that left the property in outstandingphysical condition, the Newbond/Apollo Funds’ joint venture will take advantage of the Westin Tampa Waterside’s central location as well as the broader resurgence of the Tampa market.
“In forming Newbond, we envisioned a best-in-class institutional investment platform focused on hotels and hospitality-related operating companies and technologies,” said Mr. Luthra. ”The Westin Tampa Waterside exemplifies our targeted hotel investments, bringing our team’s expertise to a high-quality institutional asset in a dynamically growing market.”
“We are excited by the opportunity to enhance an asset that benefits from an irreplaceable urban waterfront location in a high barrier-to-entry market with attractive long-term demand growth, and highly favorable demographic trends,”Mr. Avedisian added.“We couldn’t be more pleased to close the Westin Tampa Waterside acquisition with such a world-class institutional partner as Apollo.”
“Our investment in the Westin Tampa Waterside is in line with our positive long-term outlook on the broader Tampa market, where we are acquiring high-quality real estate at a significant discount to replacement cost,” said Dan Kwon, a Partner in Apollo Real Estate. “We are excited about cementing our strategic partnership with Newbond through this transaction and working together to bring the hotel to its full potential.”
The Westin Tampa Waterside is located directly across Garrison Channel from Water Street Tampa, a transformational $3 billion, 53-acre redevelopment that calls for 3,500 new residential units, an iconic cultural arts pavilion, 1 million square feet of retail and cultural spaces, and 2 million square feet of offices space. Additionally, the property is a short walk from the Tampa Convention Center and Amalie Arena, one of the busiest event venues in the country, and steps away from Tampa’s new Riverwalk, a 2.6-mile elevated boardwalk that activates Tampa’s downtown waterfront and connects riverfront parks, museums, attractions, and businesses.
About Newbond Holdings
Newbond Holdingsis a real estate investment and operating platform focused on debt and equity positions across multiple real estate product types with a hospitality focus as well as investments in related operating businesses and technology platforms. As a vertically integrated operating and investment platform, Newbond is uniquely positioned to create significant value beyond the typical investment process through creative structuring, operations and the development of single and multiple asset brands.
Apollo is a high-growth, global alternative asset manager. We seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through our investment activity across our fully integrated platform, we serve the retirement income and financial return needs of our clients, and we offer innovative capital solutions to businesses. Our patient, creative, knowledgeable approach to investing aligns our clients, businesses we invest in, our employees and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2021, Apollo had approximately $472 billion in assets under management. To learn more, please visit www.apollo.com.