Peachtree Hotel Group Finishes 2012 with 31st Acquisition in Last 24 Months, Plans Aggressive Acquisition Pace of 15-Plus Hotels

  Peachtree Hotel Group Finishes 2012 with 31st Acquisition in Last 24 Months,
  Plans Aggressive Acquisition Pace of 15-Plus Hotels in 2013

Company Adds Bench Strength to Support Acquisition and Third-Party Management
                               Contract Growth

Business Wire

ATLANTA -- January 28, 2013

Officials of Peachtree Hotel Group, one of the nation’s fastest growing hotel
acquisition, management, development and ownership groups, today announced
that it closed 2012 by completing 31 acquisitions over the past 24 months. The
most recent was the portfolio purchase of two non-performing hotel first
mortgage notes – the 135-room Hilton Garden Inn – Virginia, and the 60-room
Best Western – Florida from a regional bank. Company executives also divulged
that Peachtree plans to maintain one of the industry’s most aggressive
acquisition paces of one to three hotels per month for at least the next 12 to
18 months.

“Our unique, two-fold acquisition strategy of purchasing both hotel real
estate and discounted first mortgage notes has enabled us to grow rapidly over
the past two years while most other industry players have been on the
sidelines,” said Greg Friedman, Peachtree CEO. “To support this growth, we
continuously have added bench strength to give our organization the strength
and flexibility to handle the growth we’ve enjoyed. Our core team has more
than 150 years of collective experience, and we’ve added key players in all
facets of the business, including acquisitions, asset management, operations,
accounting and marketing to support our expansion.”

Peachtree has a diversified ownership and third-party management portfolio,
but most heavily targets the most recognized and respected brands in the
select- and limited-service categories where it feels it can add the most
value. The company has experience in and is open to most major markets, but
tends to favor the Eastern half of the United States.

“Our contrarian growth strategy has allowed us to acquire assets at attractive
prices and to attract some of the best talent in the industry during the
economic downturn,” Friedman added. “We have significant funding to acquire
both hotel notes and hotel real estate.”

The company also is expanding its third-party management division, recently
adding its third management contract, the 80-room Holiday Inn Express in
Prattville, Alabama. “Longer term, we expect our third-party management to be
a larger part of our portfolio, as much as 25 percent within the next three to
five years,” Friedman said. “This is not a sideline business for us or a way
to spread our overhead. We believe we add significant value for our owners’
hotels through best-in-class practices and support, which will allow us to
expand rapidly in this sector.”

Peachtree’s development outlook also remains optimistic. “Ours is a cyclical
industry,” Friedman said. “We soon will re-enter the development phase, and we
are primed and ready to move forward on a number of projects. We currently
have four development projects in our pipeline with two additional projects
under preliminary review.”

Peachtree’s multi-pronged approach has allowed for the company’s explosive
growth. “We are engaged in virtually all aspects of the industry, from early
development and acquisitions through third-party management and
disposition/capital redeployment strategies,” Friedman noted. “We have the
team in place to handle this growth and are expanding at a planned rate to
meet growth goals and expectations. We believe our recent and on-going
activity has kept us more limber than most of our counterparts. We are able to
move quickly on virtually any deal that fits our business model, as we are
well-capitalized and have a team that has worked through deals at a time when
most players have been able to do little more than watch. We have more than
quadrupled our portfolio over the past two years and look forward to similar
growth moving forward.”

Peachtree Hotel Group invests, operates and develops premium-branded, select-
and limited-service and extended-stay hotel assets under the Marriott,
Starwood, Hilton, Hyatt, Choice and InterContinental Hotels Group flags. Since
its inception, Peachtree has acquired or developed more than $250 million of
hotel properties and first mortgage notes. Peachtree currently owns, operates
and invests in 3,492 hotel guest rooms in 38 assets throughout the United
States, comprised of a real estate portfolio of 20 assets and a note portfolio
of 18 assets. For more information, please visit www.peachtreehotelgroup.com.

Contact:

Peachtree Hotel Group
Chris Daly, media, 703-435-6293
chris@dalygray.com
 
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