Peachtree Group's development division, Peachtree Hospitality Development (PHD), is set to deliver a record year of development achievements. This year, PHD has opened three select-service hotels, with another scheduled to open in the upcoming months. The company will also break ground on 11 hotels, primarily select-service, across the United States in 2022. Overall, Peachtree will add over 1,500 rooms to its portfolio through these developments.
"While construction starts have been slowed by the pandemic and supply chain disruptions, we have successfully navigated these issues and remain on track to deliver the most hotel openings and groundbreakings in our history," said Mitul Patel, Peachtree's COO and managing principal.
The hotels opened this year include:
- 95-room Homewood Suites by Hilton in Destin, Florida
- 134-room Homewood Suites by Hilton in Louisville, Kentucky
- 157-room SpringHill Suites in Baltimore, Maryland
Peachtree has plans to open the 132-room Hilton Garden Inn in Florence, Kentucky, later this year, and two hotels in Florida, the Hilton Garden Inn in Pensacola and the Hampton Inn Delray Beach, in the first three months of 2023.
"These hotels are already performing extremely well, achieving among the highest performance within their competitive sets in their respective markets," said Patrick Short, president of Peachtree Hospitality Management, a division of Peachtree and operator of the properties. "These results also testify to the popularity of select-service hotels, which address today's traveller's value and convenience preferences."
According to Ernst and Young (EY), one of the largest professional services networks in the world, the rise of select-service properties is indicative of the shifting preferences of travellers and hoteliers alike. Due to the segment's higher operating margins and lower construction costs, select-service is expected to remain favoured by hotel investors and developers searching for a hotel product that addresses the value and convenience preferences of today's travellers.
