PEG Companies Announces Acquisition of Eight Hotels Across United States

PROVO, Utah, September 12, 2018 – PEG Companies (PEG), a leader in hospitality and multifamily real estate development across North America, today announced the acquisition of an eight-hotel portfolio in major U.S. markets.

PEG and “PEG Capital Partners Fund III” led a group of investors, with financing from Cantor Commercial Real Estate (CCRE) through brokers Academy Commercial and Berkadia, along with Ares Management L.P. (ARES) managing funds. The acquisition comes from a major global real estate investment group.

The portfolio includes seven Residence Inns by Marriott and one Courtyard by Marriott, totaling 1,052 hotel rooms. The properties — located in Sacramento, Santa Fe, St. Louis, Chicago, Boston, Tampa, Mesa and Charlotte — grow PEG’s geographical footprint, while aligning perfectly with the firm’s urban and suburban-urban investment focus.

“We have a distinct approach for creating value for our investors,” said PEG CEO Cameron Gunter. “This portfolio represents significant time and collaboration by strategically acquiring well-performing Marriott properties in good locations and strong markets.”

Today’s acquisition announcement showcases PEG’s ability to originate and execute deals that provide investors with consistent cash flow and strong upside potential.

“One of the compelling aspects of this investment is the myriad of exit strategies available with these properties,” said PEG Chief Investment Officer Soren Halladay. “Our strong relationship with Marriott, coupled with our investment and development capabilities across multiple asset classes, allows us to be creative with not only the properties and their current uses but also further development opportunities within these specific markets. You have to be creative in today’s market in order to be successful.”

With 15 years of experience in commercial real estate, PEG has distinguished itself as a major force in the hospitality sector and in urban markets. PEG’s highly specialized, uniquely diversified leadership team works to establish strong relationships with key stakeholders in markets and builds long-term relationships of trust with local governments.

PEG uses localized knowledge and expertise in evaluation and execution of each investment opportunity. The firm takes a comprehensive approach to the entire value creation process – it is known for originating creative opportunities and hands-on involvement through project management, asset management and ultimate realization. Currently, PEG’s robust $1.4 billion pipeline includes assets in multifamily residential, student housing, mixed use and hospitality.

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