Where Smart Money is Flowing in Hotel Development
Peachtree Group CEO Greg Friedman speaks with VP of Investments Will Woodworth about identifying high-potential hotel development markets.
Hotel development deals are benefiting from favorable supply-demand dynamics post-COVID. John Schellhase, AVP of investments at Peachtree Group, joins The Opportunity Zones Podcast with Jimmy Atkinson to discuss Peachtree's approach to Opportunity Zone investments, their focus on developing hospitality assets, and the broader real estate market trends currently shaping investment opportunities.
Episode Highlights
- Peachtree’s overall Opportunity Zone real estate investment strategy, and particular focus on the hospitality sector and favored markets.
- How hospitality and hotel supply-demand imbalance has changed over the past few years, and why it is expected to continue into the near future.
- Why Peachtree is offering their San Antonio OZ hotel development deal direct to investors.
- How hospitality compares with multifamily in the current economic environment.
- Why private credit may be a significant growth area for Peachtree and other sponsors.
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About The Opportunity Zones Podcast
Hosted by OpportunityDb founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry.
Disclaimer and Forward Looking Statements
This is a marketing communication. This presentation is neither an offer to sell, nor the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by a private placement memorandum. This presentation is provided for informational and discussion purposes only and is not and may not be relied on in any manner as legal, business, financial, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any fund sponsored by Peachtree Hotel Group or its affiliates (each, a “Fund”). A private placement of interests in a Fund will only be made pursuant to a confidential private placement memorandum (as may be amended or supplemented from time to time, the “PPM”), a Fund’s subscription documents, and a Fund’s limited partnership agreement, as may be amended and restated (collectively, the “Offering Documents”), which will be furnished to qualified investors on a confidential basis at their request and should be reviewed in connection with any consideration of an investment in a Fund.No assurance can be given that a Fund’s investment objectives will be achieved. This presentation does not contain all of the information and risk factors that would be important to an investor in making an investment decision and is not an offer to sell a security or the solicitation of an offer to buy a security.The Funds described herein have not been and will not be registered under the Securities Act of 1933, as amended, the securities laws of any U.S. State or the securities laws of any other jurisdiction. The Funds will not be registered under the Investment Company Act of 1940, as amended. As such the Funds discussed are available only to Accredited Investors. Neither the Securities and Exchange Commission nor any other U.S. or Non-U.S. securities regulatory authority has passed upon the accuracy or adequacy of this presentation or approved or disapproved of the prospective investment described herein. Any representation to the contrary is a criminal offense. Significant restrictions, under both applicable law and a Fund’s limited partnership agreement, exist on the transferability of a Fund interests. There is no guarantee that an investor will receive any return on, or even a return of, an investor’s capital contributions. A discussion of material risks involved in an investment in a Fund is included in the PPM. In connection with the Offering, the Funds have entered into an exclusive managing broker- dealer agreement with Peachtree PC Investors, LLC, an affiliate of Peachtree Hotel Group II, who will receive selling commissions, a managing broker-dealer fee, a marketing reallowance fee and/ or placement agent fees in connection with these Offerings. There is a conflict of interest between us, our Sponsor and its affiliates, including Peachtree PC Investors, LLC, as dealer manager because the agreements for services, including the dealer manager agreement, are not arm’s length agreements and will not be as favorable to investors as if the parties were operating at arm’s length. Finally, our Sponsor is the indirect owner of Peachtree PC Investors, LLC. As a result, Peachtree PC Investors, LLC’s operation and management will be influenced or affected by conflicts. Peachtree Hospitality Management, Stonehill and Peachtree PC Investors, LLC are all wholly owned subsidiaries of Peachtree Hotel Group II, LLC.Some of the statements in this Presentation constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, estimates, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements in this Presentation are subject to inherent qualifications and are based on a number of assumptions. The forward-looking statements in this presentation involve risks and uncertainties, including statements as to:(i) general volatility of the securities markets in which we plan to trade; (ii) changes in strategy; (iii) availability, terms, and deployment of capital; (iv) availability of qualified personnel;(v) changes in interest rates, the debt securities markets or the general economy; (vi) increased rates of default and/ or decreased recovery rates on our investments; (vii) increased prepayments of the mortgage and other loans underlying our mortgage-backed or other asset-backed securities; (viii) changes in governmental regulations, tax rates, and similar matters; (ix) changes in generally accepted accounting principles by standard- setting bodies; (x) availability of trading opportunities in mortgage-backed, asset-backed, and other securities, (xi) changes in the customer base for our business, (xii) changes in the competitive landscape within our industry and (xiii) the continued availability to the business of PHG/Stonehill’s resources described herein on reasonable terms.The forward-looking statements are based on our beliefs, assumptions, and expectations, taking into account all information currently available to us. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known to us or are within our control. If a change occurs, the performance of instruments and business discussed herein may vary materially from those expressed, anticipated or contemplated in our forward-looking statements.
THIS IS NOT AN OFFER OR SOLICITATION TO PURCHASE ANY SECURITY. AN OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM.
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In the latest episode of Peachtree Point of View, CEO Greg Friedman interviews Will Woodworth, VP of Investments, revealing valuable market intelligence for hotel investors considering development opportunities in today's landscape.
Market Fundamentals Drive Success
The podcast highlights that successful hotel development hinges on identifying markets with clear supply-demand imbalances. Woodworth notes that occupancy rates above 70% typically signal development potential, while high barriers to entry can protect investments from over saturation. For investors, these fundamental indicators prove more reliable than chasing market trends.
Geographic Hotspots: Southeast and Sun Belt
The conversation identifies the Southeast and Sun Belt regions as particularly promising investment territories. These markets show strong correlation between hotel performance, GDP and gross metropolitan product (GMP), fueled by population shifts and corporate relocations. Texas and Florida stand out as investment hotbeds where both immediate and long-term lodging demand continues to grow.
Opportunity Zone Considerations
Investors exploring Opportunity Zone benefits will appreciate Woodworth's practical perspective. While tax incentives create advantages for investors with capital gains, he emphasizes that successful projects must stand on their own merits regardless of tax benefits. The podcast explores how certain downtown districts and tourist destinations qualify as Opportunity Zones despite their strong fundamentals, creating dual advantages for strategic investors.
Brand Selection Strategy
The discussion offers valuable insights into brand positioning in different markets. Investors should consider how soft-branded properties can create custom experiences reflecting local character while maintaining operational efficiency. This balanced approach allows developments to capture premium rates through distinctive ground-floor experiences while controlling costs through standardized room operations.
Market Selection Criteria
Perhaps most valuable for investors is understanding the selection process for viable markets. At Peachtree Group truly promising development opportunities represent less than 5% of potential deals we review. Investors should similarly exercise discipline, looking beyond surface growth to ensure infrastructure development, corporate presence, and tourism patterns align to support long-term hotel demand.
For investors seeking to navigate the hotel development landscape with greater confidence, this episode provides market intelligence directly applicable to investment decision-making. Tune in to the full Peachtree Point of View podcast for deeper insights into current market conditions and development opportunities.
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Peachtree Group Surpasses $2 Billion in Hotel Developments
Peachtree Group announced that the firm surpassed $2 billion in hotel development, bringing its total development portfolio to 48 hotels nationwide.
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ATLANTA (Feb. 3, 2025) – Peachtree Group (“Peachtree”) announced that the firm surpassed $2 billion in hotel development, bringing its total development portfolio to 48 hotels nationwide.
Peachtree's development journey began 17 years ago with a $10 million Fairfield Inn project in Alabama, establishing its expertise in hotel development with a focus on suburban, highway and tertiary markets across the Southeast and Midwest.
Today, Peachtree has expanded its reach, solidifying its leadership in hospitality development with projects not only in its traditional markets but also in urban infill locations nationwide. Recent milestones include topping out a beachfront hotel in Gulf Shores, Alabama and breaking ground on a dual-branded project in Uptown Dallas, Texas.
"Our early projects taught us how to build efficiently and effectively, setting the stage for the more complex and impactful developments we're delivering today," said Greg Friedman, managing principal and CEO for Peachtree. "From suburban mainstays to urban landmarks, our team's adaptability and expertise have been the cornerstone of our success."
Showcasing its versatility, Peachtree leverages an experienced underwriting and project management platform to strategically expand its footprint into larger urban infill markets nationwide, collaborating with local development partners and pursuing larger investments.
Recent and ongoing projects include:
- Embassy Suites, Gulf Shores, Alabama: This beachfront hotel, the largest in the area, recently topped out and is set to open in summer 2025.
- AC and Moxy Hotel, Uptown Dallas: This 264-room, dual-branded Marriott-branded development broke ground in August 2024 and represents a milestone in urban hospitality development.
- Tru by Hilton, Huntsville, Alabama: a modern 98-room hotel designed for comfort and convenience, scheduled to open in the fourth quarter of 2025.
These projects and others under construction span the country and highlight Peachtree's ability to execute across a broad spectrum of hospitality asset types, from limited-service properties to high-rise, amenity-rich hotels. Peachtree has been a strong advocate of the Qualified Opportunity Zone (QOZ) program since its inception, strategically allocating capital to drive economic development and to meet the program’s objective of fostering revitalization and growth in underserved communities. Recent examples of Peachtree's success in QOZ developments include:
- AC Hotel by Marriott, Sacramento, California: This hotel transformed an underperforming surface parking lot into a signature downtown hotel and was recently awarded one of the city's Best Real Estate Projects for 2024.
- Residence Inn by Marriott, San Antonio, Texas: Succeeding an older-generation property, the hotel taking advantage of a premier location near strong demand drivers in a diverse and growing market.
- The Hampton Inn & Suites Maui, Kahului, Hawaii: A 136-room beachfront property and Kahului’s only branded hotel. Positioned to capture demand from both the cruise ports and the primary airport, it is set to open by the end of March.
The firm has been one of the most active hotel developers in QOZs, having already opened 10 hotels, with another five under construction and three in the pipeline in these designated areas.
“Hotels are more than just buildings; they are drivers of economic opportunity, creating local jobs and providing paths to meaningful careers in hospitality. By investing in underserved hospitality markets, we aim to support the growth of neighborhoods and contribute to their development,” Friedman said.
While Peachtree remains committed to its core expertise in suburban, limited-service hotels—exemplified by the Homewood Suites by Hilton project in Louisville, Kentucky—it has also embraced larger, more complex developments in primary markets. These projects reflect Peachtree’s commitment to diversifying its portfolio and creating long-term value.
"Our development strategy is about identifying opportunities where we can leverage our learned expertise and push the boundaries of what we can achieve," Friedman said. "Whether it's suburban efficiency, urban complexity or transformative Opportunity Zone developments, our team continues to deliver exceptional results for our stakeholders."
With a proven track record and a forward-looking approach, Peachtree is poised to continue leading the way in hospitality development. The firm's ability to balance efficiency, innovation and social impact ensures it remains well positioned to meet the evolving demands of the market.
About Peachtree Group
Peachtree Group is a vertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.
Peachtree Group Breaks Ground on Residence Inn by Marriott in San Antonio, Texas
Peachtree Group celebrated the groundbreaking of a new 171-room studio-suite Residence Inn by Marriott in downtown San Antonio, Texas, near the Riverwalk, set to open in the second quarter of 2026.
ATLANTA and SAN ANTONIO (Nov. 15, 2024)– Peachtree Group ("Peachtree") celebrated the groundbreaking of a new 171-room studio-suite Residence Inn by Marriott in downtown San Antonio,Texas, near the Riverwalk, set to open in the second quarter of 2026. This development brings an upscale, extended-stay option to the vibrant San Antonio market, offering visitors a combination of comfort, modern amenities and prime access to local attractions.
The new Residence Inn will succeed an older-generation property downtown, taking advantage of a premier location near strong demand drivers, including the leisure appeal of the Riverwalk, educational activity from the expanding University of Texas at San Antonio and corporate and government demand from surrounding office buildings. With this positioning, the hotel aims to meet a range of accommodation needs in San Antonio's dynamic market.
"San Antonio is a unique market with a growing need for extended-stay hotels," said Greg Friedman, managing principal and CEO of Peachtree. "The Residence Inn will cater to the diverse demand drivers of San Antonio, including its thriving tourism sector and extensive corporate presence. Positioned within easy reach of the city's popular attractions, restaurants and business hubs, this hotel will provide guests with a prime location for both work and leisure."
Strategically located within a Qualified Opportunity Zone (QOZ), this project under scores Peachtree's commitment to fostering revitalization and growth in underserved communities. The firm has been one of the more active hotel developers in QOZs, having already opened nine hotels, with another five under construction, including the new Residence Inn, in these designated areas.
“By building within a QOZ, Peachtree's Residence Inn will create lasting economic impacts, from job creation in construction and operations to sparking further interest in nearby retail, dining and entertainment—vital elements for a thriving downtown community," Friedman said. “We are optimistic that Washington, D.C., will recognize the QOZ's impact on job creation and economic activity within these zones and will extend the program, enabling us and other developers to deliver new commercial real estate projects across the U.S.”
Merritt Development Group, an Austin, Texas-based hotel development company, will be responsible for constructing the Residence Inn, which will feature a modern design focused on spacious, home-like amenities, including fully equipped kitchens, separate living areas and workspaces in each suite, accommodating the evolving needs of today's extended-stay travelers and enhancing the hotel’s appeal to business professionals, families and long-term guests seeking comfort and convenience.
An expansive onsite fitness center and outdoor gathering space will further elevate the guest experience, offering a place for relaxation and wellness in a bustling city environment. Additionally, the hotel will provide flexible meeting space to cater to the needs of business guests, making it an attractive venue for corporate gatherings and social events. The hotel will feature a Caribou Coffee, providing an upscale coffee experience for both hotel guests and locals.
"The new Residence Inn will provide guests with a dynamic extended-stay experience uniquely suited to San Antonio's market," Friedman added."Peachtree's commitment to thoughtful development is evident in every aspect of this property, from its modern amenities to its prime location, ensuring it will be a valued addition to the city."
This development marks another milestone for Peachtree in Texas as the firm continues to expand its footprint in key markets nationwide. In October, Peachtree celebrated the groundbreaking of a new 19-story, dual-branded hotel development featuring Marriott brands AC Hotel and Moxy Hotel in Uptown Dallas, Texas. The hotel development will bring 264 upscale rooms, modern amenities and unique lifestyle offerings to the bustling McKinney Avenue corridor. The much-anticipated project promises to elevate the city's hospitality scene and is expected to open in summer 2026. In addition to these two projects, Peachtree currently has nine projects under construction across the U.S., including five in QOZs.
About Peachtree Group
Peachtree Group is avertically integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, the company manages billions in capital across acquisitions, development and lending, augmented by services designed to protect, support and grow its investments. For more information, visit www.peachtreegroup.com.