ATLANTA, Ga.—Officials of Peachtree Hotel Group have announced it made five hotel acquisitions and undertook five development projects totaling approximately $155 million during the second half of 2016, increasing to its growing portfolio of select- and limited-service hotels nationwide by approximately 1,250 rooms.
“While most indicators suggest we are near the peak of the current hospitality cycle, we firmly believe there remain a number of prudent and profitable investment opportunities that provide compelling value,” said Brian Waldman, senior vice president of investments. “As evidenced by our recent acquisitions, Peachtree will continue to focus on value-add hotel investment opportunities in secondary and tertiary markets with high barriers to entry and diverse demand generators.”
“National average daily room rate (ADR) and occupancy are predicted to continue growing, albeit at slower rates than over the past few years,” Waldman continued. “Those national averages, however, can be misleading, as each submarket and segment experiences its own path. We are confident that the markets we pursue are better insulated than most, with higher than average growth potential.”
The company invested approximately $73 million in the new acquisitions, including an additional $15 million that will be deployed to upgrade the hotels. The new acquisitions bring the portfolio to a total of 32 hotels year-to-date, encompassing 3,691 rooms. In addition to the acquisitions, Peachtree also has executed on five new development deals totaling approximately $82 million.
“We constantly review our portfolio and will regularly sell off assets at the appropriate time to continue our growth strategy and ensure we have the best mix of the right brands in the markets we find favorable,” said Jatin Desai, chief investment officer. “Those properties performed admirably, and we expect them to continue to generate good returns for the new owners. We intend to take the profits from these dispositions and reinvest them in acquisitions, renovations and expanding our portfolio.”