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U.S. TRAVELERS SAID that gas prices and inflation will impact their summer travel decisions more than COVID-19 concerns, according to a survey commissioned by the American Hotel & Lodging Association. The survey, conducted by Morning Consult and released just ahead of the Memorial Day holiday weekend ending May 30, revealed that more than half of the respondents, 57 percent, are likely to take fewer leisure trips and 54 percent will take shorter trips due to current gas prices. The majority of people surveyed, 82 percent, said that gas prices will have at least some impact on their travel destinations.

PEACHTREE HOTEL GROUP recently acquired two upscale hotels in Florida. They are the 207-key AC Hotel Miami Aventura and the 233-key Aloft Miami Aventura, in Aventura, Florida, outside Miami. With these recent acquisitions, Atlanta-based Peachtree, led by partners Bimal Patel, Hiten Suraj and Rupesh Patel, has acquired approximately $2 billion in hotel assets this year. The company expects to continue making opportunistic hotel acquisitions amid the current hospitality recovery cycle. "Our growth strategy since Peachtree's inception is to capitalize on cycle-specific opportunities," said Greg Friedman, Peachtree's CEO. "Today, we are seeing opportunities to acquire hotels at compelling levels, which hasn't been available over the last 15 months. With strengthening economic tailwinds boosting hotel fundamentals and compelling cap rates compared to other asset classes, the lodging sector is among the best real estate classes for investing. Also, with the ongoing inflationary environment, hotels are an excellent hedge against inflation due to daily adjustments in average daily rates."

PEACHTREE GROUP, THE newly formed affiliate of Peachtree Hotel Group created last week to handle its real estate investments, is launching its first initiative, the 1031 Exchange Delaware Statutory Trust program. The company also selected Tim Witt as president over the new program. A DST is a single-purpose entity qualified for Section 1031 real estate exchanges, according to Peachtree. It allows investors to exchange replacement properties without incurring taxable gain on the sale of previously owned assets. Peachtree's 1031 Exchange DST program will invest in institutional-grade hotels in the U.S. through Peachtree Hospitality Management, another division of Peachtree, is expected to operate any properties acquired as part of the exchange. "As we expand our array of high-quality, diversified investment strategies, we wanted to create 1031 Exchange DSTs to provide tax deferral strategies in the hospitality sector," said Greg Friedman, Peachtree's CEO and managing principal. "We anticipate significant growth and appreciation in the hospitality sector, driving values above pre-pandemic levels. Also, real estate offers an excellent alternative investment channel for those seeking an inflation hedge. We strongly believe hospitality is the most investable asset in the market today, and we anticipate being able to achieve outsized returns."

HOTELS CAN ENHANCE profitability through greater reliance on revenue management technology tactics, according to IDeaS, a revenue management service provider. The survey examines how investors view revenue technologies, the role of artificial intelligence in hospitality, and how technology is reshaping hospitality commercial organizations. According to the survey, "Unlocking hotel performance: The power of revenue management technology today,'" inflation and economic pressures may lead hoteliers to consider cost-cutting measures to boost profitability. However, a majority of respondents view revenue management technology as the most effective and efficient way to enhance net operating income. "For investors, revenue management technology is shifting from a competitive edge to an essential instrument for maintaining competitiveness and securing a solid bottom line," said Mike Chuma, vice president of global marketing, IDeaS.