Officials of Peachtree Hotel Group (PHG) today announced it made five hotel acquisitions for approximately $105 million and undertook five development projects for $85 million during 2017, expanding its portfolio of select- and limited-service hotels by approximately 700 rooms nationwide.
“With most economic signs pointing towards continued growth, we plan to take advantage of market dynamics as we expand our portfolio of hotel investment opportunities,” said Brian Waldman, senior vice president of investments, Peachtree Hotel Group. “We continue to seek hotels that can benefit from improved marketing and management, as well as measured capital improvements, in secondary and tertiary markets with multiple demand generators and high barriers to new entry.
During 2017, PHG made the following acquisitions:
- The 96-suite TownePlace Suites Gainesville in Fla.
- The 136-room Aloft Tempe in Ariz.
- The 135-room Hampton by Hilton Green Bay in Wis.
- The 123-room Element Denver Park Meadows in Colo.
- The 209-room Element Miami International Airport in Fla.
The company invested approximately $105 million in new acquisitions, an increase of nearly $30 million spent in 2016. The new acquisitions bring the portfolio to a total of 38 hotels year-to-date, encompassing 4,371 rooms.
In addition to the acquisitions, Peachtree completed five development deals last year:
- The 98-room Hilton Garden Inn Jackson, Tenn.
- The 106-suite Home2 Suites by Hilton San Antonio Stone Oak in Texas
- The 140-room Hotel Indigo Celebration Pointe in Gainesville, Fla.
- The 100-room Courtyard by Marriott Kennesaw, Ga.
- The 90-suite Home2 Suites Prattville, Ala.
The company also divested four hotels totaling 676 rooms.
Peachtree has an equally impressive pipeline for Q1 2018. The company’s acquisition targets include seven hotels from the Hilton, Marriott and IHG brand families throughout Virginia, Louisiana, Missouri and Nebraska totaling around 800 rooms at an estimated cost of $120 million. Additionally, the company plans to develop 11 hotels for roughly $255 million totaling about 1,300 rooms throughout Florida, Georgia, Indiana and Tennessee.
“Our investors believe in our strategy of finding the ‘perfect’ marketplace for our hotels, which is not necessarily a Top 25 MSA for us,” Waldman added. “We believe our targeted geographic areas are better insulated to weather any potential downturns on the horizon. That being said, we are cautiously optimistic heading into the new year.”
“We continue to have an aggressive appetite for new acquisition, development and joint venture opportunities heading into 2018,” said Brent LeBlanc, senior vice president. “Peachtree has the team and financial wherewithal in place to move quickly and strategically for deals that meet our strict investment criteria.”
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