PHG Closes 2017 With Five Acquisitions, Developments

ATLANTA—Peachtree Hotel Group (PHG) finished 2017 with five hotel acquisitions for approximately $105 million, and undertook five development projects for $85 million, expanding its portfolio of select- and limited-service hotels by approximately 700 rooms nationwide.

“With most economic signs pointing toward continued growth, we plan to take advantage of market dynamics as we expand our portfolio of hotel investment opportunities,” said Brian Waldman, SVP of investments. “We continue to seek hotels that can benefit from improved marketing and management, as well as measured capital improvements, in secondary and tertiary markets with multiple demand generators and high barriers to new entry.”

During 2017, PHG made the following acquisitions:

  • The 96-suite TownePlace Suites Gainesville in Florida
  • The 136-room Aloft Tempe in Arizona
  • The 135-room Hampton by Hilton Green Bay in Wisconsin
  • The 123-room Element Denver Park Meadows in Colorado
  • The 209-room Element Miami International Airport in Florida

The company invested approximately $105 million in new acquisitions, an increase of nearly $30 million spent in 2016. The new acquisitions bring the portfolio to a total of 38 hotels year-to-date, encompassing 4,371 rooms.

In addition to the acquisitions, Peachtree completed five development deals last year:

  • The 98-room Hilton Garden Inn Jackson, TN
  • The 106-suite Home2 Suites by Hilton San Antonio Stone Oak in Texas
  • The 140-room Hotel Indigo Celebration Pointe in Gainesville, FL
  • The 100-room Courtyard by Marriott Kennesaw, GA
  • The 90-suite Home2 Suites Prattville, AL

The company also divested four hotels totaling 676 rooms.

For the first quarter of 2018, the company’s acquisition targets include seven hotels from the Hilton, Marriott and IHG brand families throughout Virginia, Louisiana, Missouri and Nebraska, totaling around 800 rooms at an estimated cost of $120 million. Additionally, the company plans to develop 11 hotels for roughly $255 million, totaling about 1,300 rooms throughout Florida, Georgia, Indiana and Tennessee.

 

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