Officials of Peachtree Hotel Group, one of the nation’s fastest growing hotel acquisition, management, development and ownership groups, today announced that it significantly exceeded its projections for 2013, adding 16 hotel assets and three third-party management contracts. The company remains equally optimistic for 2014, projecting it will add 12-14 hotel assets, both acquisitions and new-builds, and up to six, third-party management contracts by year’s end. Already this year, the company has three hotel assets under contract for a total of 483 rooms.
“All metrics point towards 2014 being another strong year for the hospitality industry, and we plan to aggressively pursue projects where we believe we can provide the best service and add value as either an owner and/or operator,” said Greg Friedman, Peachtree CEO. “Additionally, we are selectively considering certain development opportunities and expect to execute on two to four new builds this year.”
“We are pursuing sites that have high barriers to entry with multiple demand generators and long-term growth opportunities,” said Jatin Desai, Peachtree CIO. “Given the cyclicality of the hotel industry, we are disciplined in our development process so that our projects can generate risk-adjusted returns in all phases of the real estate cycle.”
Peachtree acquired 16 assets in 2013 totaling 2,015 rooms. Additionally, the company disposed of 10 assets in 2013. The company also became an approved 3rd party operator for the Marriott CFRST brands and already has added two properties to its third-party management portfolio. Peachtree will invest in excess of $20 million during 2014 to upgrade its owned hotel portfolio.
With acquisition and investment capabilities and seasoned, third-party management expertise, Peachtree focuses on premium-branded, select-service and limited-service hotels. While the company has experience in all markets nationwide, its portfolio centers primarily on the Southern and Midwestern U.S.
“Between operating performance and acquisition opportunities, we forecast another strong year for Peachtree and the hospitality industry overall,” said Mitul Patel, Peachtree COO. “We expect that the majority of our portfolio will experience moderate RevPAR growth and that the cost of capital will remain historically inexpensive over the coming 12 months. All of these factors will contribute to a fertile transaction market for 2014.”
To facilitate its fast-paced growth, Peachtree has continuously expanded its operation, acquisition and investment management teams, adding eight people over the past six months. “As we expand, we have trigger points to add additional bench strength to help manage our ever growing portfolio,” Patel added.
Peachtree Hotel Group invests, operates and develops premium-branded, select- and limited-service and extended-stay hotel assets under the Marriott, Starwood, Hilton, Hyatt, Choice and InterContinental Hotels Group flags. Since its inception, Peachtree has acquired or developed more than $300 million of hotel properties and first mortgage notes. Peachtree currently owns, operates and invests in 40 hotel assets totaling 3,984 rooms, comprised of 23 real estate assets and 17 notes. The company has an additional four hotels totaling 363 rooms under third party management. For more information, please visit www.peachtreehotelgroup.com.