ATLANTA—Peachtree Group continued to construct momentum with its sixth resort acquisition of the yr with the AC Lodge by Marriott in Park Metropolis, Utah, exhibiting the rising fairness funding alternatives re-emerging within the hospitality sector.
“Our staff has efficiently acquired plenty of resort properties at below-market costs, taking benefit of the present slowdown in transactions,” stated Greg Friedman, managing principal and CEO of Peachtree. “Whereas the market is slower than common because of excessive rates of interest, tighter lending situations, financial, and geopolitical uncertainty, we proceed to stay lively, capitalizing on distinctive alternatives that come up on this surroundings whereas using a number of methods, which permit us to capitalize on the present market dislocation. By staying affected person and strategic, we’ve been capable of safe priceless property whereas others take a extra cautious strategy.”
The six acquisitions, totaling 789 rooms, embrace three Hilton accommodations and three Marriott accommodations. All accommodations are operated by Peachtree’s hospitality administration division, which at the moment manages 93 accommodations, throughout 27 manufacturers with 11,837 rooms situated in 26 states.
The acquired properties embrace:
- 100-room AC Lodge by Marriott in Park Metropolis, Utah
- 128-room Residence Inn by Marriott in Wesley Chapel, Florida
- 114-room Residence Inn by Marriott in Oakhurst, New Jersey
- 146-room Home2 Suites by Hilton in Falls Church, Virginia
- 130-room Home2 Suites by Hilton in Lawrenceville, Georgia
- 180-room Hilton Backyard Inn in Denver, Colorado
Because the transaction market normalizes, Peachtree stays positioned to develop its portfolio and improve long-term returns.
“What’s much more promising is that the bid-ask hole between consumers and sellers is starting to slim, as exterior market pressures proceed to place stress on property-level economics. Given these components, we anticipate a rise in transaction exercise within the waning months of 2024 and into 2025,” Friedman stated.
House owners with looming maturities have gotten extra motivated to promote quite than face expensive refinancing, creating alternatives for capitalized consumers.
“Because the market rebalances, we’re well-positioned with a various platform and a confirmed monitor document of execution that can permit us to proceed our momentum and seize on enticing alternatives within the months forward, ” Friedman added.
