ATLANTA (Sept. 26, 2021) – Peachtree Group ("Peachtree") continues to build momentum with its sixth hotel acquisition of the year, with the acquisition of the AC Hotel by Marriott in Park City, Utah, highlighting the growing equity investment opportunities re-emerging in the hospitality sector.
"Our team has successfully acquired a number of hotel properties at below-market prices, taking advantage of the current slowdown in transactions,” said Greg Friedman, managing principal and CEO of Peachtree.. “While the market is slower than usual due to high interest rates, tighter lending conditions, economic and geopolitical uncertainty, we continue to remain active, capitalizing on unique opportunities that arise in this environment while employing multiple strategies which allow us to capitalize on the current market dislocation. By staying patient and strategic, we've been able to secure valuable assets while others take a more cautious approach.”
The six acquisitions, totaling 789 rooms, include three Hilton hotels and three Marriott hotels. All hotels are operated by Peachtree’s hospitality management division, which currently manages 93 hotels, across 27 brands with 11,837 rooms located in 26 states.
The acquired properties include:
· 100-room AC Hotel by Marriott in Park City, Utah
· 128-room Residence Inn by Marriott in Wesley Chapel, Fla.
· 114-room Residence Inn by Marriott in Oakhurst, N.J.
· 146-room Home2Suites by Hilton in Falls Church, Va.
· 130-room Home2Suites by Hilton in Lawrenceville, Ga.
· 180-room Hilton Garden Inn in Denver, Colo.
As the transaction market normalizes, Peachtree remains well positioned to expand its portfolio and enhance long-term returns.
“What's even more promising is that the bid-ask gap between buyers and sellers is beginning to narrow, as outside market pressures continue to put stress on property-level economics. Given these factors, we anticipate an increase in transaction activity in the waning months of 2024 and into 2025,” – Greg Friedman, Managing Principal & CEO, Peachtree Group
Owners with looming maturities are becoming more motivated to sell rather than face costly refinancing, creating opportunities for well capitalized buyers.
“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, " Friedman added.
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.
On Peachtree Point of View, CEO Greg Friedman joins Michael Bernath, SVP of Acquisitions and Dispositions, for a deep dive into how Peachtree navigates special situations investing amid today’s complex commercial real estate landscape.
As interest rates remain elevated and a wall of debt maturities looms over the commercial real estate sector, many owners are facing refinancing challenges, reduced asset values, and tightening liquidity. Michael Bernath explains how these pressures are creating distinct buying opportunities, particularly in the hospitality space, where operational complexity and brand relationships can amplify distress and unlock value for experienced investors.
“The general idea with special situations within CRE is some form of distress within the capital stack,” Bernath explains. But hospitality brings added complexity: “You have the brands involved, and their requirements can add stress to an already challenging situation.”
Bernath highlights how the pandemic forced many hotel owners to divert capital reserves away from maintenance and brand-mandated renovations to cover debt payments. Now, hotel brands are "putting their foot down" and requiring these delayed renovations, creating pressure points for owners who lack the necessary capital.
The conversation reveals Peachtree's multi-faceted approach to special situations. Rather than simply acquiring distressed properties, they stay nimble within the capital stack—providing preferred equity, purchasing debt positions, or structuring creative partnerships depending on the opportunity. Essentially, they tailor each investment to the situation at hand, finding the most effective way to create value across the capital structure—not just by buying assets.
Friedman and Bernath emphasize that success in special situations investing requires deep market knowledge, operational expertise and the ability to identify an asset’s intrinsic value. As Bernath notes, “We ultimately are cementing our exit the day we buy an asset.”
The duo shares a real-world example of this strategy in action: a hotel property in Arizona that Peachtree tracked for two years before acquiring. Their plan includes rebranding the hotel and leveraging their operational expertise in the market to boost performance and unlock long-term value.
For investors questioning whether the complexity of special situations is worth the effort, Bernath offers a clear answer: Peachtree’s vertical integration and experience across multiple market cycles provide a distinct competitive edge. “This isn’t a team just dipping its toe in,” he says. “We’ve now executed this strategy through two full cycles.”
As commercial real estate faces continued market pressures, Peachtree sees the current environment as “very constructive” for its special situations investment strategy—potentially offering attractive risk-adjusted returns for those with the expertise to navigate these complex transactions.
Tune in to the full episode of Peachtree Point of View to gain deeper insights into how experienced investors are finding value in today's challenging commercial real estate landscape and subscribe to catch future episodes on your favorite podcast platform.
What you’ll learn in this episode:
ATLANTA (Sept. 26, 2021) – Peachtree Group ("Peachtree") continues to build momentum with its sixth hotel acquisition of the year, with the acquisition of the AC Hotel by Marriott in Park City, Utah, highlighting the growing equity investment opportunities re-emerging in the hospitality sector.
"Our team has successfully acquired a number of hotel properties at below-market prices, taking advantage of the current slowdown in transactions,” said Greg Friedman, managing principal and CEO of Peachtree.. “While the market is slower than usual due to high interest rates, tighter lending conditions, economic and geopolitical uncertainty, we continue to remain active, capitalizing on unique opportunities that arise in this environment while employing multiple strategies which allow us to capitalize on the current market dislocation. By staying patient and strategic, we've been able to secure valuable assets while others take a more cautious approach.”
The six acquisitions, totaling 789 rooms, include three Hilton hotels and three Marriott hotels. All hotels are operated by Peachtree’s hospitality management division, which currently manages 93 hotels, across 27 brands with 11,837 rooms located in 26 states.
The acquired properties include:
· 100-room AC Hotel by Marriott in Park City, Utah
· 128-room Residence Inn by Marriott in Wesley Chapel, Fla.
· 114-room Residence Inn by Marriott in Oakhurst, N.J.
· 146-room Home2Suites by Hilton in Falls Church, Va.
· 130-room Home2Suites by Hilton in Lawrenceville, Ga.
· 180-room Hilton Garden Inn in Denver, Colo.
As the transaction market normalizes, Peachtree remains well positioned to expand its portfolio and enhance long-term returns.
“What's even more promising is that the bid-ask gap between buyers and sellers is beginning to narrow, as outside market pressures continue to put stress on property-level economics. Given these factors, we anticipate an increase in transaction activity in the waning months of 2024 and into 2025,” – Greg Friedman, Managing Principal & CEO, Peachtree Group
Owners with looming maturities are becoming more motivated to sell rather than face costly refinancing, creating opportunities for well capitalized buyers.
“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, " Friedman added.
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.
.jpg)
