US-based Peachtree Hotel Group (PHG) has announced plans to invest about $183m in ten new hotels, which will add to its portfolio of select-service properties nationwide.
Four hotels representing nearly 600 rooms are under contract for acquisition and are expected to close within the next 60 days.
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The properties include two Hampton Inns, an aloft and a DoubleTree conversion opportunity.
PHG senior vice president of investments Brian Waldman said: "Although the outlook for the hotel industry is positive over the next several years, we’re seeing more motivated owners selling both non-core and assets requiring significant capital reinvestment due to the recent volatility in the capital markets coupled with tightening debt markets.
"With RevPAR at or near its peak, we continue to be very selective about the opportunities we pursue and target hotels that can benefit from either improved management or are in need of capital investments."
Another six additional properties are in various stages of development.
The five hotels, which are under development, represent nearly 700 rooms across four states and include Marriott, Hilton, IHG and Starwood brand affiliations.
All ten hotels will be operated by PHG’s management arm upon consummation of the transactions/openings.
PHG chief investment officer Jatin Desai said: "Our prolific pipeline is a testament to our platform of aggressive, but prudent, expansion in select-service hotels within secondary and tertiary markets.
"We continue to seek hotels that can benefit from strategic cash infusions and/or better operating practices, as well as development opportunities in markets with multiple demand generators, limited new supply and a positive business environment."
