Dive Brief:
- Peachtree Group acquired the 100-room AC Hotel by Marriott in Park City, Utah, the Atlanta-based investment management firm announced Thursday.
- Peachtree declined to disclose the financial terms of the transaction. The buy is Peachtree’s sixth hotel acquisition this year, following other recent purchases in Florida, New Jersey, Virginia, Georgia and Colorado.
- In a statement, CEO Greg Friedman said the current slowdown in transactions has allowed Peachtree to acquire several hotel properties at below-market prices. According to Peachtree, the Utah deal highlights “the growing equity investment opportunities re-emerging in the hospitality sector.”
Dive Insight:
Peachtree’s six acquisitions this year comprised three Hilton hotels and three Marriott hotels, totaling 789 rooms. Peachtree’s hospitality management division is operating all of the properties. Earlier this month, the company appointed Steve Mackenzie to the role of executive vice president of hotel operations.
“While the market is slower than usual due to high interest rates, tighter lending conditions, economic and geopolitical uncertainty, we continue to remain active,” Friedman said in a statement. “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.”
Beyond the Park City hotel, properties Peachtree acquired this year are a 128-room Residence Inn by Marriott in Wesley Chapel, Florida; a 114-room Residence Inn by Marriott in Oakhurst, New Jersey; a 146-room Home2 Suites by Hilton in Falls Church, Virginia; 130-room Home2 Suites by Hilton in Lawrenceville, Georgia; and a 180-room Hilton Garden Inn in Denver.
Peachtree Group rebranded from Peachtree Hotel Group in October 2022 in a bid to expand the breadth of investment types in the company’s multibillion-dollar investment portfolio.
The total U.S. hotel transaction volume was down 23% year over year in the first half of 2024, according to JLL. The commercial real estate company also projected in June that more hoteliers would sell than refinance this year as their loan maturity nears.
