Peachtree Group has announced its sixth hotel acquisition of the year, marking a significant expansion of its portfolio with the addition of the 100-room AC Hotel by Marriott in Park City, Utah.
Totalling 789 rooms, the six acquisitions comprise a mix of three Hilton and three Marriott hotels, reflecting Peachtree's diverse hospitality management division.
Peachtree CEO and managing principal Greg Friedman said: "Our team has successfully acquired a number of hotel properties at below-market prices, taking advantage of the current slowdown in transactions.
“While the market is slower than usual due to high interest rates, tighter lending conditions, and economic and geopolitical uncertainty, we continue to remain active, capitalising on unique opportunities that arise in this environment while employing multiple strategies, which allow us to capitalise on the current market dislocation. By staying patient and strategic, we've been able to secure valuable assets while others take a more cautious approach.”
This division currently manages 93 hotels, encompassing 27 brands with 11,837 rooms across 26 states.
Peachtree stated that the portfolio expansion is a testament to its robust management capabilities and strategic market positioning.
The acquired properties so far include a 128-room Residence Inn by Marriott in Wesley Chapel, Florida; a 114-room Residence Inn by Marriott in Oakhurst, New Jersey; and a 180-room Hilton Garden Inn in Denver, Colorado.
These additions are poised to enhance Peachtree's market presence and long-term returns.
Friedman also noted the changing dynamics of the transaction market: “What's even more promising is that the bid-ask gap between buyers and sellers is beginning to narrow, as outside market pressures continue to put stress on property-level economics. Given these factors, we anticipate an increase in transaction activity in the waning months of 2024 and into 2025.”
The current market conditions are prompting owners with looming maturities to consider selling their properties, providing an advantage to well-capitalised buyers such as Peachtree.
Friedman added: "As the market rebalances, we are well-positioned with a diverse platform and a proven track record of execution that will allow us to continue our momentum and seize on attractive opportunities in the months ahead."
Earlier this year, Peachtree Group's hospitality management division was appointed to operate the Merrill Hotel, Muscatine, a Tribute Portfolio Hotel in Iowa.
