Peachtree Group has expanded its portfolio and added its sixth hotel this year with the acquisition of the AC Hotel by Marriott in Park City, Utah. The acquisition price and seller details were not disclosed.
The acquisition highlights the growing equity investment opportunities reemerging in the hospitality sector.
Taking advantage of the slowdown in hotel deals, Peachtree’s team has acquired several hotels at below-market prices. The inflated interest rates, tight lending conditions, economic and geopolitical uncertainty have led to the slowdown, said Greg Friedman, managing principal and CEO of Peachtree. The group continues to remain active, capitalizing on unique opportunities that arise in this environment while employing multiple strategies which enables the company to capitalize on the current market dislocation.
“By staying patient and strategic, we’ve been able to secure valuable assets while others take a more cautious approach,” Friedman said.
Peachtree has added six hotels so far this year, totaling 789 rooms. This includes three Hilton and three Marriott hotels. All the properties are operated by Peachtree’s hospitality management arm, which currently manages 93 hotels under 27 brands, totaling 11,837 rooms located in 26 states.
The acquired hotels include:
- 100-room AC Hotel by Marriott in Park City, Utah
- 128-room Residence Inn by Marriott in Wesley Chapel, Fla.
- 114-room Residence Inn by Marriott in Oakhurst, N.J.
- 146-room Home2 Suites by Hilton in Falls Church, Va.
- 130-room Home2 Suites by Hilton in Lawrenceville, Ga.
- 180-room Hilton Garden Inn in Denver, Colo.
Peachtree will be better positioned to grow its presence and enhance long-term returns as the deal market normalizes.
“What’s even more promising is that the bid-ask gap between buyers and sellers is beginning to narrow, as outside market pressures continue to put stress on property-level economics,” Friedman said. In such situations, Peachtree expects a rise in transaction activity in the remaining months of 2024 and into 2025.
Owners with looming maturities are preferring to sell rather than face costly refinancing, creating opportunities for well capitalized buyers, Peachtree said in a statement.
“As the market rebalances, we are well-positioned with a diverse platform and a proven track record of execution that will allow us to continue our momentum and seize on attractive opportunities in the months ahead,” Friedman said.
Peachtree has been expanding and diversifying its offerings and launched a restaurant management division earlier this month. Looking to tap into the potential of the quick service market, the new division aims to focus on operating quick-service restaurants and has partnered with AdventHealth and recently opened a Starbucks location in the AdventHealth Orlando hospital.
Peachtree is also in talks with other coffee franchise offerings and plans to grow its reach to high profile or high demand markets with captive audiences. The group is looking to develop a portfolio of high-quality quick service coffee locations across the U.S.
