Dive Brief:
- Atlanta-based Peachtree Group formed a long-term partnership with Michigan-based Group 10 Management that adds 14 hotels to its portfolio, the company announced Wednesday.
- The properties span Marriott International, Hilton and IHG Hotels & Resorts brands, predominately in metro Detroit.
- The move brings the number of properties in Peachtree Group’s hospitality management division to more than 100 as the real estate investment firm fortifies its portfolio of hotels managed by third parties.
Dive Insight:
According to Peachtree, the partnership with Group 10 “solidifies its position as a leading third-party hotel manager.”
Peachtree’s hospitality management division operates 107 hotels, primarily in the upper midscale and upscale segments, across 27 states including the District of Columbia.
A “substantial portion” of that portfolio “is third-party managed, underscoring our commitment to driving strong financial results for our partners while providing exceptional guest experiences,” said Vickie Callahan, president of Peachtree’s hospitality management division, in a statement.
With Group 10, Peachtree’s portfolio of third-party-managed hotels expands to 31 properties.
In return, Peachtree said, Group 10 will benefit from Peachtree’s expertise in brand standard compliance, scalable operating efficiencies, skilled talent acquisitions, digital and marketing initiatives, renovations and cost-savings.
Earlier this week, hospitality management companies PM Hotel Group and Sightline also announced a strategic combination, which Maryland-based PM said would create stronger lifestyle and experiential travel offerings.
Guest satisfaction is up at hotels run by third-party management, according to a September report from J.D. Power. The report ranked Atlanta’s Davidson Hospitality Group highest for overall guest satisfaction.
Peachtree’s investment arm acquired the AC Hotel by Marriott in Park City, Utah, in September.
