Peachtree Hotel Group Acquires Two Hotels in California With Verakin Capital
Main Photo: La Bellasera Hotel & Suites
Date: November 2021
Name: Hampton Inn & Suites and La Bellasera Hotel & Suites – to become a Tapestry Collection by Hilton
Location: Paso Robles, California
Number of Keys: 141
Seller: Pacific West Hotels, a family owned business, run by Kevin Bierl and his three children
Buyer: Peachtree Hotel Group and Verakin Capital
Peachtree Hotel Group, in its first joint venture partnership with Verakin Capital, has acquired the 81-key Hampton Inn & Suites and the 60-key La Bellasera Hotel & Suites, in Paso Robles, California. Peachtree Hospitality Management, a division of Peachtree, will operate the properties.
According to reports Hampton Inn & Suites Paso Robles sold for $12.7 million, and La Bellasera Hotel & Suites for $16.7 million.
The Hampton Inn & Suites and La Bellasera Hotel & Suites were developed in 2003 and 2007, respectively, and are located at 206-212 Alexa Court in Paso Robles, in the heart of the state’s central coast. Paso Robles attracts visitors from across the globe, with nearly 2 million tourists visiting annually.
Peachtree will re-brand the La Bellasera Hotel & Suites to a Tapestry Collection by Hilton, an upscale lifestyle brand that will allow the hotel to benefit from Hilton’s global distribution system and Hilton Honors program while maintaining distinctive design characteristics, allowing the property to command higher average daily rate premiums.
The Hampton Inn & Suites will also undergo a renovation of all areas of the property, making it one of the most recently refreshed properties in the area.
Peachtree is a real estate private equity investment firm investing primarily in hospitality. Since its founding in 2008, the company has completed hundreds of real estate investments valued at more than $5 billion in total market capitalization, and currently has $1.9 billion in equity under management.
Verakin Capital creates the collaborative avenue to come together, pool resources, mitigate risk and multiply networks.
“These properties fit our investment criteria of investing in premium-branded hotels in growing markets with strong demand drivers,” said Brian Waldman, Peachtree’s executive vice president, investments. “This also demonstrates our team’s ability to source attractive opportunities that offer significant upside potential.”
“This acquisition marks the beginning of our long-term strategic partnership with Peachtree Hotel Group and Peachtree Hospitality Management. With a mutually aligned investment criteria, we are able to work together to expand our footprints across the nation,” said Rupesh Patel, Partner at Verakin Capital.
“We see the growth in lifestyle hotels, which address the growing trend in travel that combines business with leisure,” said Greg Friedman, Peachtree’s CEO. “While still offering similarities and predictability across the Hilton brand, no two Tapestry Collection hotels are identical, which appeal to today’s selective traveler looking for unique experiences.”
“We see the growth in lifestyle hotels, which address the growing trend in travel that combines business with leisure,” said Greg Friedman, Peachtree’s CEO. “While still offering similarities and predictability across the Hilton brand, no two Tapestry Collection hotels are identical, which appeal to today’s selective traveler looking for unique experiences.”
Price: $12.7m (Hampton Inn & Suites), $16.7m (La Bellasera Hotel & Suites)
Price per Key: $156,653 (Hampton Inn & Suites), $278,018 (La Bellasera Hotel & Suites)
THPT Comment: Another example of investment into the lifestyle hotel sector….in this case wine being at the heart of the lifestyle!
First Seen: Hotel-Online.com
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