ATLANTA, Ga. - Officials of Peachtree Hotel Group (PHG), one of the nation’s fastest growing hotel investment and management platforms, announced that it continues its record growth with investments in 12 hotels year-to-date. The company announced that it has acquired the 260-room Holiday Inn Downtown Atlanta and the 159-room Sheraton Jacksonville, Fla. Additionally, PHG has four ground-up development projects in its pipeline: the 100-room Courtyard by Marriott Kennesaw, Ga., the 106-room Home2 Jacksonville, Fla., the 91-room Home2 Prattville, Ala. and the 98-room Hilton Garden Inn Jackson, Tenn. The company also has invested $23 million to renovate and/or rebrand six of their assets including the 110-room Hampton Orlando/UCF, Fla., the 107-room Holiday Inn Franklin/Cool Springs, Tenn., the 125-room Hilton Garden Inn Overland Park, Kan., the 161-room Embassy Suites Williamsburg, Va., the 116-room SpringHill Suites Downtown San Antonio, Texas, and the 78-room Fairfield Inn & Suites Indianapolis, Ind.
“Building off of a very successful 2014 that saw the addition of 14 assets to our portfolio of select- and limited-service hotels in major urban and secondary markets, we continue to take proactive steps to enhance and expand our portfolio,” said Greg Friedman, Peachtree CEO.
“We are active in all three growth platforms: acquiring, upgrading and development. With the industry expected to enjoy continued, though measured, rate and occupancy growth for the next two to five years, we continue to implement our aggressive growth strategy,” said Jatin Desai, chief investment officer.
The four hotels under development are expected to break ground within the next nine months. The Home2 Prattville is expected to be break ground by Nov 1, 2015, the Home2 Jacksonville by March 2016 and the Hilton Garden Inn Jackson by June 2016. PHG will own and operate these three hotels on its own behalf. The Courtyard by Marriott Kennesaw broke ground earlier this October and is expected to be completed by October 2016. Peachtree will provide development and management services for the Courtyard.
“We believe that strategic development at this phase of the cycle offers the potential for sustained growth and are deploying capital in select markets,” said Mitul Patel, chief operating officer. “Although development is increasing, it remains at relatively moderate levels in most markets, which mitigates the effects of overbuilding. Our development profile is focused on growth markets with multiple demand generators and high barriers to new entry. We have excellent relationships with all the premier brand families and will continue to develop within those brands.”
Peachtree Hotel Group 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. Since its inception, Peachtree has acquired or developed more than $770 million of hotel properties and first mortgage notes. Peachtree's current portfolio is comprised of 63 hotel assets totaling 6,850 rooms, including 30 real estate assets and 33 notes.
