Peachtree Hotel Group Acquires Five Hotel Mortgages, Two Hotels in 2013
Company Also Originates Over $3.0 Million in Financing and Completes Hotel
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
“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
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
“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
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.
Peachtree Hotel Group
Lauralee Dobbins, media
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