Why hotel deals under $50 million are leading the US transactions market
Hotel deals under $50M are dominating the U.S. market, driven by private buyers, less financing risk, and faster closing timelines.
The Strategic Advantage of Special Situations Investing During Market Uncertainty
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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:
- What defines "special situations investing "in commercial real estate and how they create investment opportunities
- How to evaluate good entry points when investing in distressed assets
- Various investment structures beyond traditional acquisitions (preferred equity, note purchases, etc.)
- How current market conditions are creating a favorable environment for special situation investments
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CoStar News – Despite economic uncertainty and a slowdown in hotel transactions during the first half of the year, deal-making in the hotel industry continues—especially for assets priced under $50 million.
Peachtree Group, an Atlanta-based investment firm, has remained active in this space, capitalizing on the flexibility and reduced risk these transactions offer.
“Deals under $50 million tend to be easier to capitalize and attract a larger buyer pool,” said Michael Bernath, senior vice president of investments at Peachtree Group. “These assets are typically acquired by private buyers who have more flexibility and are less reliant on institutional capital, which has been more constrained in the current environment.”
Peachtree’s momentum in this segment underscores how private buyers are continuing to shape the hotel acquisition landscape.
Read full article on CoStar.com ›
The Strategic Advantage of Special Situations Investing During Market Uncertainty
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.
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:
- What defines "special situations investing "in commercial real estate and how they create investment opportunities
- How to evaluate good entry points when investing in distressed assets
- Various investment structures beyond traditional acquisitions (preferred equity, note purchases, etc.)
- How current market conditions are creating a favorable environment for special situation investments
桃树集团收购犹他州万豪AC酒店
Peachtree集团继续保持势头，收购了犹他州帕克城的万豪AC酒店，今年的第六次酒店收购。
亚特兰大（2021 年 9 月 26 日） —桃树集团 （“Peachtree”）凭借其第六家酒店继续保持势头 收购 今年，收购了位于犹他州帕克城的万豪万豪AC酒店，凸显了酒店业重新出现的不断增长的股权投资机会。
Peachtree董事总经理兼首席执行官格雷格·弗里德曼表示：“我们的团队利用当前交易放缓的机会，成功地以低于市场的价格收购了许多酒店物业。”“尽管由于高利率、更紧缩的贷款条件、经济和地缘政治的不确定性，市场比平时慢，但我们继续保持活跃，利用这种环境中出现的独特机会，同时采用多种策略，使我们能够利用当前的市场混乱。通过保持耐心和保持战略性，我们得以保护宝贵的资产，而其他人则采取更加谨慎的态度。”
这六项收购共计789间客房，包括三家希尔顿酒店和三家万豪酒店。所有酒店均由运营 Peachtree 的酒店管理部门，该公司目前管理着27个品牌的93家酒店，拥有11,837间客房，分布在26个州。
收购的房产包括：
· 犹他州帕克城万豪空调酒店，拥有 100 间客房
·位于佛罗里达州韦斯利教堂的万豪原住客栈，拥有 128 间客房。
· 位于新泽西州奥克赫斯特的万豪居然酒店拥有 114 间客房
· 位于弗吉尼亚州福尔斯彻奇的希尔顿Home2Suites酒店拥有146间客房
· 位于乔治亚州劳伦斯维尔的希尔顿Home2Suites酒店拥有 130 间客房
·位于科罗拉多州丹佛的希尔顿花园酒店，拥有 180 间客房。
随着交易市场的正常化，Peachtree仍然有能力扩大其规模 投资组合 并提高长期回报。
“更令人鼓舞的是，随着外部市场压力继续给房地产层面的经济带来压力，买家和卖家之间的买卖差距开始缩小。鉴于这些因素，我们预计在2024年减弱的几个月和2025年的交易活动将增加，” — Greg Friedman，Peachtree Group 董事总经理兼首席执行官
到期日迫在眉睫的所有者越来越有动力出售而不是面临昂贵的再融资，这为资本充足的买家创造了机会。
弗里德曼补充说：“随着市场的再平衡，我们处于有利地位，拥有多元化的平台和良好的执行记录，这将使我们能够在未来几个月保持势头并抓住有吸引力的机会。”
关于桃树集团
Peachtree Group是一家垂直整合的投资管理公司，专门发现和利用以商业房地产为支撑的混乱市场中的机会。如今，该公司通过收购、开发和贷款管理着数十亿美元的资本，并辅之以旨在保护、支持和增加其投资的服务。欲了解更多信息，请访问 www.peachtreegroup.com。