SAN MATEO, California—Officials of Verakin Capital announced that the company has completed a minority investment in a three-hotel portfolio at an undisclosed amount. This investment represents their third with Peachtree Hotel Group, totaling seven hotels in four states.
“We have been able to invest in hotels at below replacement cost and, in some cases, below current market values,” said Rupesh Patel, partner at Verakin Capital. “By focusing on portfolio investments, we are able to get in at a favorable basis, giving us significant potential appreciation down the road.”
The hotels in the current investment include:
- The 120-suite Home2 Suites Eugene Downtown University Area in Eugene, Oregon
- The 137-room Aloft Hillsboro-Beaverton in Hillsboro, Oregon
- The 119-suite Home2 Suites by Hilton Pittsburgh/McCandless in McCandless, Pennsylvania
“Our strategy of collaborating and co-investing with well-established groups allows us to target multiple assets across many segments and in broader markets,” Patel added. “Sourcing and closing deals have been especially difficult recently, creating a challenging environment for many investors to enter the market. Collectively my partners, Bimal Patel, Hiten Suraj, and I, are the highest contributors of the capital raised to date for our group’s investments, showing our confidence in our strategies and partnerships. Since our inception, the combined forces of our principals have greater access to investment opportunities and cash flow than we did individually, and we want to share these resources with our investor community.”
Previous investments made by Verakin include the 81-room Hampton Inn & Suites Paso Robles and the 60-room La Bellaserra Hotel & Suites, both in Paso Robles, California. The latter hotel is planned to convert to a Tapestry by Hilton. In addition, they also invested in the dual-branded, 228-room Home2 Suites by Hilton/Hilton Garden Inn Phoenix Tempe, University Research Park in Arizona. All hotels acquired are managed by the team led by Patrick Short at Peachtree Hospitality Management.
“Verakin targets institutional assets in strategic markets,” Patel noted. “Relationships are the keystone of our business strategy, and we believe in transparent growth with our network of like-minded investors who trust our stewardship of their investments. Our ultimate goal is to help our network gain access to attractive real estate investments and build their own long-term wealth while we strengthen the foundations of Verakin.”
The company targets co-investment opportunities in select-service hotels and compact full-service hotels where it can create value through operations, renovations, or other components.
“We currently are focusing on existing relationships with longtime associates,” Patel concluded. “We believe we have created a strong group of like-minded investors that will continue to collaborate in various ways and potentially create new enterprises moving forward. We are confident this growing group has the expertise and capital to participate in a multitude of investments with various groups.”
