ATLANTA, Ga.—Officials of Peachtree Hotel Group, a hotel acquisition, management, development, and ownership group, has announced that it exceeded its projections for 2013, adding 16 hotel assets and three third-party management contracts. The company remains equally optimistic for 2014, projecting it will add 12 to 14 hotel assets, both acquisitions and new-builds, and up to six, third-party management contracts by year’s end. Already this year, the company has three hotel assets under contract for a total of 483 rooms.
“We are pursuing sites that have high barriers to entry with multiple demand generators and long-term growth opportunities,” said Jatin Desai, Peachtree CIO. “Given the cyclicality of the hotel industry, we are disciplined in our development process so that our projects can generate risk-adjusted returns in all phases of the real estate cycle.”
Peachtree acquired 16 assets in 2013 totaling 2,015 rooms. Additionally, the company disposed of 10 assets in 2013. The company also became an approved third-party operator for the Marriott CFRST brands and already has added two properties to its third-party management portfolio. Peachtree will invest in excess of $20 million during 2014 to upgrade its owned hotel portfolio.
Peachtree focuses on premium-branded, select-service, and limited-service hotels. While the company has experience in all markets nationwide, its portfolio centers primarily on the Southern and Midwestern U.S.
“Between operating performance and acquisition opportunities, we forecast another strong year for Peachtree and the hospitality industry overall,” said Mitul Patel, Peachtree COO. “We expect that the majority of our portfolio will experience moderate RevPAR growth and that the cost of capital will remain historically inexpensive over the coming 12 months. All of these factors will contribute to a fertile transaction market for 2014.”