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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ATLANTA and DALLAS (Oct. 3, 2024) – Peachtree Group (“Peachtree”) celebrated the groundbreaking of a new 19-story, dual-branded hotel development featuring the award-winning Marriott brands, AC Hotel and Moxy Hotel, in the heart of Uptown Dallas. The 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
The property will offer an unmatched blend of comfort, style and convenience, featuring 110 rooms for the AC Hotel and 154 rooms for the Moxy Hotel, providing guests with distinct yet complementary experiences that will be positioned competitively with the premium hotels in the Uptown market.
“Most hotels in Uptown cater to the upper-upscale and luxury segments, leaving the submarket lacking in upscale hotel options to meet the needs of a substantial portion of Uptown's demand,” said Greg Friedman, managing principal and CEO of Peachtree. “Uptown represents one of the highest income and most desirable submarkets within the Dallas market. The dual-branded hotel will be situated in a premier location within the neighborhood, half a block from much of the area’s restaurants, bars and entertainment and easily accessible to numerous corporate demand drivers.”
With its modern design, state-of-the-art amenities and prime location in Uptown Dallas, the hotels are set to become a preferred destination for both business and leisure travelers. Positioned against the vibrant Dallas urban landscape, this dual-branded development will redefine upscale hotel accommodations, attracting visitors and fostering community engagement.
The signature Moxy Bar and Restaurant will greet guests at street level, setting the tone for a fun and energetic atmosphere. An exclusive highlight of the property will be the custom-branded bar and lounge located on the 8th floor, to feature an elevated amenity deck with an outdoor terrace, water features and breathtaking views of Dallas.
"The elevated amenity deck and custom-branded bar will create a unique destination within Uptown Dallas, driving demand from both hotel guests and locals alike," Friedman said. "This dual-branded property is designed to offer a dynamic experience that will stand out in the city’s competitive hospitality market."
Further enhancing the guest experience, the property will include a state-of-the-art fitness center, perfect for active travelers. The property also will boast a 261-stall onsite parking garage, conveniently accommodating hotel guests and visitors to McKinney Avenue’s nearby restaurants and nightlife venues.
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.
Los acuerdos de desarrollo hotelero se están beneficiando de una dinámica favorable entre la oferta y la demanda después de la COVID. John Schellhase, vicepresidente ejecutivo de inversiones de Peachtree Group, se une El podcast Opportunity Zones con Jimmy Atkinson para analizar el enfoque de Peachtree con respecto a las inversiones en Opportunity Zone, su enfoque en el desarrollo de activos hoteleros y las tendencias más amplias del mercado inmobiliario que actualmente configuran las oportunidades de inversión.
Organizado por el fundador de OpportunityDB Jimmy Atkinson, El podcast Opportunity Zones incluye entrevistas con invitados de gestores de fondos, asesores, responsables políticos, profesionales de impuestos y otros expertos destacados de la industria de las zonas de oportunidad.