Peachtree Hotel Group continues to capitalize on the hotel industry’s recovery by acquiring seven premium-branded hotels for approximately $135 million. The acquisitions, totaling 829 rooms, include six Hilton hotels and one Marriott hotel. All hotels will be operated by Peachtree Hospitality Management (PHM), a division of Peachtree.
“These acquisitions are complementary to our existing portfolio of high-quality, well-located assets with strong demand generators,” said Brian Waldman, Peachtree’s EVP, investments. “We experienced an uptick during the second half of 2021 for hotel acquisition opportunities, and these seven properties are a continuation of our strategy to benefit from the ongoing recovery in hospitality.”
The acquired properties include:
- 228-room dual-flag hotel—120-room Hilton Garden Inn Phoenix Tempe, University Research Park (pictured above) and 108-room Home2 Suites by Hilton Phoenix Tempe, University Research Park in Tempe, AZ, which were built in 2017.
- 137-room Aloft Hillsboro-Beaverton in Hillsboro, OR, which was built in 2017
- 121-room Hilton Garden Inn Casper in Casper, WY, which was built in 2008.
- 120-room Home2 Suites by Hilton Eugene Downtown University Area in Eugene, OR, which was built in 2016
- 119-room Home2 Suites by Hilton Pittsburgh/McCandless in Pittsburgh, which was built in 2013.
- 104-room Hilton Garden Inn West Lafayette Wabash Landing in West Lafayette, IN, which was built in 2003.
“We are excited to add these hotels to our portfolio, furthering our growth and footprint across the country,” said Patrick Short, PHM’s president. “These hotels offer exceptional operational value-add opportunities for potentially decreased expenses and increased efficiencies with our property management takeover.”
Verakin Capital, a real estate investment group, has a minority investment in three of the seven hotels at an undisclosed amount. Those are the Home2 Suites Eugene Downtown University Area, Aloft Hillsboro-Beaverton and Home2 Suites by Hilton Pittsburgh/McCandless.
“We have been able to invest in hotels at below replacement cost and, in some cases, below current market values,” said Rupesh Patel, partner, 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.”