INVESTMENT
PEACHTREE REBRANDS to match investment expansion
NEW GROUP STRATEGY WILL INITIALLY FOCUS ON THE DEBT SIDE , GIVEN THE INHERENT DOWNSIDE PROTECTION , WHILE HOTEL NEAR-TERM HOTEL STRATEGY WILL BE LOOKING AT DEVELOPMENT OPPORTUNITIES .
By JEFF WEINSTEIN , EDITOR IN CHIEF
An expanded breadth of investment types has led Peachtree Hotel Group to rebrand as Peachtree Group to manage and control its multi-billion-dollar investment portfolio and direct investment strategies across its distinct operating and real estate divisions , including hospitality , commercial lending , residential development and capital markets .
As it more specifically relates to its ongoing hospitality investment strategy , Peachtree Group CEO Greg Friedman says evolving economic dynamics are influencing its approach . “ The difficulty it creates on the acquisition front makes a solid case to focus on developments ,” Friedman says . “ You are less concerned about the short-term headwinds . Everything happening now is transitory ; nothing is permanently changing the fundamentals of hospitality .”
As a result , Friedman says Peachtree Group would rather focus on developments that will be coming out of the ground in 12 to 18 months . “ There is a minimal number of companies that can build new hotels successfully ,” he says . “ When we open in two years or so , our hotels will be one of the limited numbers of those opening . And we will be opening in market conditions and should reap the benefits of the next upcycle .”
Even with the bullish outlook on development , the newly dubbed Peachtree Group reflects the recognition of potentially broader investment opportunities across asset classes . Led by its managing principals Friedman and Jatin Desai , serving as CFO , Peachtree ’ s operating companies will continue to be led by their current executives .
Peachtree ’ s hospitality division includes Peachtree Hotel Group , which will continue to invest in hospitality-related real estate ; Peachtree Hospitality Management , a management company that operates 80 hotels across 23 brands with 9,579 rooms located in 21 states ; and Peachtree Hospitality Development , the hotel construction and renovation group .
The commercial lending division includes Stonehill and its affiliated companies , Stonehill Commercial Real Estate Group , which originates loans across all real estate sectors , and Stonehill PACE , a direct property assessed clean energy lender for all commercial asset classes .
The residential development division includes The Revive Land Group , which focuses on designing , entitling and developing residential and mixed-use projects .
The capital market division includes Peachtree PC Investors , the exclusive managing broker-dealer for Peachtree ’ s investment offerings .
IN-HOUSE APPROACH Peachtree Group ’ s ecosystem , or what it refers to as a vertically integrated management platform , has been a key to its success , according to Friedman . “ Having all our vertical businesses in-house lets us get the best execution for a specific opportunity .”
Further , Friedman states , having those resources and institutional knowledge in-house makes Peachtree much better in each of its business units . “ We are a better buyer because of what we do on the lending side , and we are a better lender because of what
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