ATLANTA–(hospitalitybusinessnews.com)–Peachtree Hotel Group, one of the nation’s fastest growing hotel acquisition, management, development and ownership groups, today announced that it acquired/invested in six hotels in the southeastern United States during the 2013 first quarter. At this pace, the company is well ahead of its previously announced goal of adding 15 hotels to its portfolio during the coming year.
“Our approach to hotel investment begins with being flexible,” said Greg Friedman, Peachtree CEO. “Our growth strategy encompasses 100 percent acquisitions, participating as a majority or minority owner, acquiring first mortgage hotel loans and third-party management.”
Jatin Desai, chief investment officer, noted that the company’s diversified acquisition strategy of both real estate and note acquisitions allows it to surface transactions very early in the process which yields more opportunities.
“During the first quarter, we looked at more than 100 transactions, including individual assets and portfolios, but selected only six where we thought we could add value at appropriate risk-adjusted returns,” said Desai. “While all but one of these transactions were equity-related, acquiring hotel loans remains a high priority for us. We want to work with owners and operators who can benefit from restructuring of existing loans, cash infusions or providing other creative financing alternatives.”
“Each of these assets is a great fit and complements our growing portfolio of 25 select service and extended stay hotels. The properties’ geographic locations and dynamics match up well with our strategy of owning and managing hotels in primary and secondary markets,” said Mitul Patel, chief operating officer.
In preparation for this growth spurt, the company added significant bench strength to both its acquisition/financing capabilities and hotel management. “We have the depth to comfortably add 15 hotels this year and may increase our goal if market conditions warrant such.” Patel said.
The six hotels include:
- The 85-room and suite Hampton Inn Okeechobee in Florida
Peachtree made a majority investment in the waterfront hotel situated on picturesque Lake Okeechobee. The hotel offers meeting space to accommodate up to 35 people, state-of-the-art business center, fitness room and 24-hour Suite Shop convenience store.
- The 96-suite Homewood Suites by Hilton Durham-Chapel Hill/I-40 in North Carolina
Peachtree acquired the extended-stay property located just off I-40, with easy access to area highways and minutes from Raleigh-Durham International Airport (RDU). Duke University Medical Center, Duke University, UNC-Chapel Hill, prominent corporations, museums and other area attractions are within walking distance of the hotel in Durham. The hotel provides a complimentary breakfast bar, convenience store and outdoor pool.
- The 98-room Four Points by Sheraton Durham at Southpoint in North Carolina
Located 11 miles from Raleigh-Durham International Airport, the hotel, acquired by Peachtree, is nearby the Research Triangle Park, a hub of prestigious universities and leading tech and pharmaceutical companies and medical centers. The hotel has 1,800 square feet of banquet space, fitness center and indoor pool.
- The 96-suite Residence Inn Little Rock hotel in Arkansas
Peachtree made a sliver investment and now manages the extended-stay hotel. Located off Interstates 430 & 630, this Little Rock extended stay hotel is situated next to the Arkansas Heart Hospital and nearby to area attractions, such as UAMS, Verizon Arena, the Little Rock Downtown Historic District, The Clinton Library and Little Rock Zoo.
- The 120-room Courtyard by Marriott Jacksonville I-295/East Beltway in Florida
The green lodging certified hotel, now owned by Peachtree, offers a fitness center and outdoor heated pool and spa. The hotel is convenient to the JaxPort Cruise Terminal and offers overnight parking for cruise-goers and is near the Mayo Clinic, St. Luke’s Hospital, University of North Florida and Jacksonville University.
- The 66-room Comfort Inn in Alabama
Peachtree acquired the first mortgage note.