Peachtree Hotel Group Posts Record Growth Goals with 16 Acquisitions in 2013, 2014 Predicted to Surpass Previous High Water Marks
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.
"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.
About Peachtree Hospitality Management
Peachtree Hospitality Management, a division of Peachtree Hotel Group, is a hotel management company that creates loyalty across all stakeholders: team members, guests and owners. PHM's proprietary systems and processes maximize financial performance and value of every asset, deliver efficiencies and enable hotel teams to provide guests with unique and memorable experiences. PHM manages 59 hotels across 20 brands, with 7,023 rooms located in 17 states. In 2020, PHM ranked number 40 on Hotel Business' top hotel management company list - up 15 spots since 2019.
About Peachtree Hotel Group
Peachtree Hotel Group operates, develops and invests in premium-branded, full-, select- and limited-service and extended-stay hotel assets under the Marriott, Hilton, Hyatt, Choice and InterContinental Hotels Group flags. Since its inception, Peachtree has invested in more than $4.2 billion of hotel properties and first mortgage notes. Peachtree's current portfolio is comprised 160 hotels or hotel backed assets totaling 20,366 rooms, 63 hotels and 97 notes. For more information, please visit www.peachtreehotelgroup.com.