ATLANTA—Peachtree Hotel Group invested more than $50 million in seven hotels during the second quarter of 2013. The group is on track to exceed its 2013 hotel acquisition and investment goals before the end of the third quarter.
“Our first quarter activity included the acquisition of six assets, while the second quarter was dominated by note purchases and direct loan originations,” says Greg Friedman, Peachtree CEO. “We set a 2013 goal of growing our total portfolio by 15 assets, and at the mid-point of the year, we have outpaced our own aggressive plan.”
Friedman says the firm’s ability to invest in all levels of the capital stack, from equity to senior debt to mezzanine and beyond, enables the hotel investment firm to leverage opportunities in a volatile market. Peachtree has what he calls a “healthy appetite” for all areas of engagement, as well as the financial capacity to continue executing at this pace.
Peachtree acquired five first mortgage notes secured by five hotel properties with 842 rooms across three states. Stonehill Strategic, an affiliate of Peachtree, originated two new first mortgages on select service assets in Florida, bringing the Peachtree portfolio to 49 hotel assets and notes.
“The six hotels acquired in the first quarter already are exceeding our performance expectations due to implementation of revenue management strategies and cost control disciplines,” says Mitul Patel, COO of Peachtree. “With this added portfolio depth, strong performance metrics, and a rebounding travel sector, I fully expect this to be a breakout year for our company.”
Jatin Desai, chief investment officer, noted that the company already has three hotels under contract with closings scheduled for third quarter. Those properties are a Fairfield Inn & Suites and two Hilton Garden Inns.
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 4,408 hotel guest rooms in 49 assets throughout the United States. Its portfolio includes 27 assets and a note portfolio of 22 assets.