Peachtree Hotel Group announced that its total investment activity for 2021, including hotel acquisitions, developments, loans and investments, was a record $2.0 billion in total capitalization across 140 transactions. .
“We are extremely pleased to have completed an extraordinary year of investment activity,” said Greg Friedman, CEO of Peachtree. “Our strategy of investing top-down in the capital stack and opportunistically pivoting as markets move allows us to capitalize on investments through any economic cycle. 2021 has exemplified our ability, and we expect 2022 to be another strong year on the investment side.”
At the end of 2021, Peachtree acquired nine hotels for approximately $300 million and grew the company’s portfolio of owned and managed hotels to 76, totaling 9,351 rooms nationwide. Notable hotel acquisitions made included:
- 233-room AC Hotel by Marriott in Aventura, Florida
- 207-room Aloft Miami Aventura in Aventura, Florida
- 192-room Embassy Suites by Hilton in Kennesaw, GA
- 143-room Aloft Nashville Franklin in Franklin, Tennessee
- 140-room Cambria Hotel in Rockville, Maryland
- 120-room SpringHill Suites by Marriott in Annapolis, Maryland
- 106-room Hilton Garden Inn in Granbury, TX
- 81-room Hampton Inn in Paso Robles, CA
- 60-room La Bellasera Hotel & Suites in Paso Robles, CA
Stonehill, a commercial real estate direct lender and subsidiary of Peachtree, issued loans and acquired senior notes, primarily backed by real estate assets, totaling approximately $1.6 billion in market capitalization. The company deployed $770 million across 23 issued loans, which included construction investments, bridges and preferred stock. Stonehill, through its affiliate Stonehill PACE, has completed $150 million in commercial property rated clean energy (“CPACE”) financings through 17 transactions, making it one of the CPAC’s major on-balance sheet lenders in the United States.
Stonehill also purchased 103 senior notes with an aggregate market capitalization of approximately $700 million.
“While investment in ticket purchases has been significant over the past two years, we plan to deploy more of our capital into opportunistic acquisitions, core developments and loans within the limited-service hotel chains and service as part of the current cycle of hospitality recovery,” said Brian Waldman, Peachtree’s executive vice president, investments.
According to Jones Lang LaSalle’s US Select-Service Hotel Trends & Outlook study, select-service hotels represent a defensive real estate sector with higher and more consistent returns than other hotels. The sector has also shown greater long-term stability with limited volatility in the average price per key over the past 20 years.
Additionally, in 2021, the company began construction of five upscale branded hotels totaling approximately 700 rooms in California, Florida and Kentucky. Additionally, Peachtree has a pipeline of approximately 20 additional hotel developments in various stages of planning or construction.
“With the end of the global pandemic expected to end this year and the sustained economic recovery boosting hospitality fundamentals, we believe the hospitality industry remains among the best real estate classes to invest in,” Waldman said. .
Peachtree is a real estate private equity investment firm investing primarily in the hospitality industry. Since its inception in 2008, the firm has made hundreds of real estate investments valued at over $6.0 billion in total market capitalization and currently has $2.0 billion in equity under management.