ATLANTA—Peachtree Hotel Group completed seven hotel deals in the first half of 2014. That puts the hotel investment and management group on track to add 12 to 14 hotel assets to its portfolio—through a combination of acquisitions, new development, and mortgage loan originations—by the end of the year.
“As predicted, 2014 is proving to be a strong year for the hotel industry as a whole and Peachtree has enjoyed the rising tides, with our existing portfolio experiencing robust gains in RevPAR and profitability,” says Greg Friedman, Peachtree CEO. “Our ability to deploy capital at different levels in the capital stack has allowed us to maintain a healthy pipeline of investment opportunities in this competitive market.”
Peachtree operates, develops and invests in premium-branded, select- and limited-service and extended-stay hotel assets under the Marriott, Starwood, Hilton, Hyatt, Choice, and InterContinental Hotels Group flags. The company has acquired or developed more than $400 million of hotel properties and first mortgage notes. Peachtree’s current portfolio includes 50 hotel assets totaling 5,199 rooms, including 27 real estate assets and 23 notes.
So far this year, Peachtree has added 1,030 rooms to its hotel portfolio, including acquiring: the 163-room Embassy Suites in Williamsburg, VA; the 189-room Courtyard by Marriott in Columbia, SC; and the 195-room Four Points by Sheraton in Biloxi, MS.
“The acquisition market remains active, and we continue to see a number of deals that excite us, both fee simple and debt originations,” says Jatin Desai, Peachtree CIO. “We remain committed to our targeted growth plan of seeking out select-service and limited-service hotels with well-respected flags that could benefit from a change in management, capital improvements, refinancing, or some combination of the three.”
Peachtree also provided a $9.1 million in first mortgage/mezzanine financing for the Candlewood Suites in Indianapolis, IN and a $10.9 million in first mortgage mezzanine financing for the Hilton Garden Inn in Phoenix. Rounding out the deal flow, the company developed opened the 110-room Courtyard by Marriott in Columbus, MS and launched construction on the 105-room Courtyard by Marriott and The Mill conference center and office building in Starkville, MS.
“Our steady growth is indicative of the fertile market the industry as a whole is experiencing,” says Mitul Patel, Peachtree COO. “As we enter the growth phase of this cycle, there are still a number of hotels either in need of new management, financing or fresh equity. We expect to be very active players for the remainder of the year.”