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: