Monday February 3rd, 2014 - 9:29AM
ATLANTA—Peachtree Hotel Group added 16 hotels representing 2,015 rooms and three third-party management contracts in 2013.
The company projects it will add 12-14 hotel assets, both acquisitions and new-builds, and up to six, third-party management contracts by year’s end.
Thus far this year, the company has three hotel assets under contract for a total of 483 rooms.
“All metrics point towards 2014 being another strong year for the hospitality industry, and we plan to aggressively pursue projects where we believe we can provide the best service and add value as either an owner and/or operator,” stated Greg Friedman, Peachtree CEO. “Additionally, we are selectively considering certain development opportunities and expect to execute on two-to-four new builds this year.”
Jatin Desai, Peachtree CIO, stated, “We are pursuing sites that have high barriers to entry with multiple demand generators and long-term growth opportunities.”
Peachtree disposed of 10 assets in 2013 and also became an approved third-party operator for select Marriott 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, according to the company.
“Between operating performance and acquisition opportunities, we forecast another strong year for Peachtree and the hospitality industry overall,” stated 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."