Peachtree Hotel Group Acquires Five Hotel Mortgages, Two Hotels in 2013 Third Quarter Company Also Originates Over $3.0 Million in Financing and Completes Hotel Conversion Business Wire ATLANTA -- November 4, 2013 Peachtree Hotel Group, one of the nation’s fastest growing hotel investment and management platforms, today announced that it continued to expand rapidly during the 3rd quarter, investing in seven assets comprised of 763 rooms, through the purchase of five first mortgage notes and the acquisition of two hotels. Additionally, the company completed a $1.8 million conversion of its Hampton Inn in Milledgeville, Ga., and provided a mezzanine loan of $3.1 million for the Element Hotel in Houston, Texas, to recapitalize the senior debt through its affiliate, Stonehill Strategic Capital. In total, Peachtree expanded its portfolio by approximately $50 million in new investments for the 3^rd quarter. “We continue to outpace our initial expectations, already exceeding our goal of adding 15 assets to our portfolio during 2013,” said Greg Friedman, Peachtree’s chief executive officer. “Throughout 2013, we purchased 11 first mortgage notes and seven hotels and completed three loan originations via Stonehill Strategic Capital. Our appetite remains healthy for additional investment opportunities in all levels of the capital stack, and we remain very optimistic that we will have continued success in 4^th quarter 2013 and beyond.” Peachtree prepared for this growth by expanding their internal teams and corporate capabilities. The company recently hired Kevin Cadin to serve as in-house general counsel and added bench strength within accounting and hotel operations. To help manage and facilitate their continued growth, Peachtree also formed Stonehill Investors, which will focus on strategic equity initiatives and manage the growing pool of investor relationships. Industry veteran Rob Woomer has been selected to oversee this group. The transactions completed in the third quarter included: 1.First mortgage note purchase on the 88-room Days Inn in Ala. 2.First mortgage note purchase on the 140-room Hotel Indigo in Ga. 3.First mortgage note purchase on the 81-room Hampton Inn in Ga. 4.First mortgage note purchase on the 70-room Holiday Inn Express in Ga. 5.First mortgage note purchase on the 163-room Holiday Inn in Mich. 6.Purchase of the 71-room Fairfield Inn and Suites in Lewisville, Texas. 7.Purchase of the 158-room Hilton Garden Inn in Tupelo, Miss. The company’s management division, Peachtree Hotel Management, will operate both acquired hotels and oversee their upcoming renovations. Peachtree currently owns and operates 24 hotels and manages three hotels as a third-party operator. “Our combined note and real estate investment strategy continues to serve our company well,” said Jatin Desai, chief investment officer. “The profitability of our earlier transactions has provided a steady, positive cash flow, allowing us to be more nimble than many of our competitors when it comes to closing deals creatively and quickly. We will maintain an active, but measured, approach to our growth for the remainder of the year and into 2014.” “With a robust investment pipeline across the U.S., our future looks as bright as our present and immediate past,” said Mitul Patel, chief operating officer. “Not only are we able to source numerous deals before they come to market, but our experienced operations team has the expertise to have an immediate impact on the bottom line and quickly turn these properties around. We are firing on all cylinders.” About Peachtree Hotel Group 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 $350 million of hotel properties and first mortgage notes. Peachtree currently owns, operates or invests in 4,653 hotel guest rooms in 48 assets throughout the United States, comprised of a real estate portfolio of 27 assets and a note portfolio of 21 assets. For more information, please visit www.peachtreehotelgroup.com. About Stonehill Strategic Capital Stonehill Strategic Capital, an affiliate of Peachtree Hotel Group, is primarily focused on originating, acquiring and managing bridge loans, mezzanine loans and preferred equity investments backed by limited and select service hotel assets. Stonehill Strategic Capital provides creative finance solutions for hospitality projects seeking capital to complete acquisitions, recapitalizations, refinancings, and renovations. About Stonehill Investors Stonehill Investors, an affiliate of Peachtree Hotel Group, is an investment platform committed to preserving and growing wealth for individual investors by developing and managing innovative real estate and debt products. Stonehill Investors seeks to offer a variety of real estate and debt investment options for individual investors in the hospitality sector. Contact: Peachtree Hotel Group Lauralee Dobbins, media 703-435-6293 Lauralee@dalygray.com
Peachtree Hotel Group Acquires Five Hotel Mortgages, Two Hotels in 2013 Third Quarter
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