LAST YEAR, PEACHTREE Hotel Group of Atlanta acquired 10 hotels, worked on five developments in Opportunity Zones and closed on four new-build developments during 2019. The company, led by Managing Principals Mitul Patel and Jatin Desai and CEO Greg Friedman, predicts further growth this year.
Peachtree’s acquisitions from last year totaled $300 million and brought the company’s portfolio to 50 hotels with 6,000 rooms nationwide. The acquisitions include:
- The 128-room Hampton Inn by Hilton Fort Lauderdale/Plantation in Fort Lauderdale, Florida.
- The 92-suite Home2 Suites by Hilton Cincinnati Liberty Township in Liberty Township, Ohio.
- The 126-room Hampton Inn by Hilton Baltimore-Downtown Convention Center in Baltimore, Maryland.
- The 156-room Courtyard by Marriott Savannah Downtown/Historic District in Savannah, Georgia.
- The 111-suite Home2 Suites by Hilton El Paso Airport in El Paso, Texas.
- The 152-suite Residence Inn by Marriott Charlotte South Park in Charlotte, North Carolina.
- The 132-suite Home2 Suites by Hilton Dallas Downtown at Baylor Scott & White in Dallas.
- The 180-room Hampton Inn by Hilton Indianapolis Downtown Across from Circle Centre in Indianapolis.
- The 117-room Hampton Inn & Suites by Hilton Phoenix Tempe in Phoenix.
- The 224-room, under construction dual-branded Hilton Garden Inn and Home2 Suites by Hilton Orlando Downtown in Orlando.
The Opportunity Zone projects were:
- The 157-suite SpringHill Suites by Marriott Baltimore Downtown/Inner Harbor in Baltimore, Maryland.
- The 199-room AC Hotel by Marriott Phoenix in Phoenix.
- The 126-room Tempo by Hilton Indianapolis in Indianapolis.
- The 108-room Residence Inn by Marriott Plainfield in Plainfield, Indiana.
- The 135-suite Homewood Suites by Hilton Louisville in Louisville, Kentucky.
Opportunity Zones are typically low-income or distressed areas designated by state governments under federal guidelines in which companies are offered tax incentives to provide long-term private capital investment, according to economic advisory group Smart Growth America.
The four new-build projects are the 134-room AC Hotel by Marriott Austin in Austin, Texas; the 122-suite Home2 Suites by Hilton Ashburn in Ashburn, Virginia; the 118-suite SpringHill Suites by Marriott Lexington in Lexington, Kentucky; and the 110-room Town Place Suites Palmdale in Palmdale, California.
While the hotel industry remains strong, investors must still be selective, said Brian Waldman, executive vice president of investments for Peachtree.
“The industry remains a street corner business, and each market has unique characteristics that allow us to identify and execute on attractive investment opportunities,” Waldman said. “Moving forward, we will continue to focus on stronger, more well insulated markets coupled with premium brands and quality construction that can withstand volatility as the economy approaches the peak of the economic cycle. Barring any unforeseen black swan event, we expect to have a similarly robust 2020.”
Peachtree also opened the Home2 Suites by Hilton Lawrenceville Atlanta Sugarloaf in Lawrenceville, Georgia, in December.
Last year, Columbia, Maryland-based Baywood Hotels, led by President Al Patel, set a record by opening 18 new hotels during the year. Among them was the 1000th Fairfield by Marriott, and the company also broke ground on its first modular-built hotel.