Peachtree Hotel Group Buys Canopy Hotel In Midtown
A prominent Atlanta hotel investor has purchased a 3-year-old Hilton-branded hotel in Midtown.
Peachtree Hotel Group purchased the 176-room Canopy by Hilton Atlanta Midtown from a joint venture of Greystar, Concord Hospitality and private equity firm Whitman Peterson, which developed the hotel as part of Greystar's Ascent Midtown mixed-use development.
Canopy is the hotel component to the campus, which was delivered in 2018 and includes the 328-unit Ascent Midtown residences apartment tower. The hotel sits along West Peachtree Street where it merges with Peachtree Street and is sandwiched between 17th and 18th streets. The price wasn't disclosed.
Peachtree obtained a nearly $41M loan in June from Synovus Bank for its acquisition of the hotel, according to property tracking firm Databank. The Fulton County Development Authority issued $43M in bonds for the project in 2016, according to Databank.
The hotel was assessed at a value of $24.7M this year, according to Fulton County tax records.
"Midtown Atlanta is one of the hottest markets in the country right now, and we are excited to be able to make this investment in our backyard,” Peachtree Chief Investment Officer Brian Waldman said in a press release. "The Canopy Atlanta Midtown fits our investment criteria of investing in premium-branded hotels in growing submarkets with strong demand drivers."
Canopy's trade comes as hotel sales have picked up, as investors are trying to buy assets with money raised during the pandemic under the expectation that a wave of distress would hit the market, a dynamic that largely failed to materialize.
Atlanta has been a prime beneficiary of that dynamic — 10% of all hotel buys in the U.S. occurred in Georgia during the first half of 2022, according to an LW Hospitality Advisors report.
Other significant transactions in Metro Atlanta include RADCO Cos.' purchase of the American Hotel Atlanta Downtown from Legacy Ventures for $68M, MNSK Hotel's purchase of the DoubleTree by Hilton Hotel in Marietta for $21.2M, and Olshan Properties' $26.5M sale of the Sheraton Suites Galleria to a joint venture of Paceline Equity Partners and Highline Hospitality Partners, according to the LWHA report.