It is the inaugural project to be funded by the firms recent £9.5m refinancing, as it seeks to grow from 17 to 22 sites.
The 12-room High Field Town House occupies an 1860’s Victorian villa and has been designed by Peach’s co-owner Jo Eames.
It sits next door to the group’s existing High Field pub in the Birmingham suburb of Edgbaston.
"When we opened The High Field in 2014 it was such an immediate hit that we jumped at the chance to convert the lovely old house next door into boutique hotel rooms with the same vibe," said Eames.
"Eighteen months later, we are opening the doors to The High Field Town House, which is just five minutes away from the centre of the city yet feels a world away [in] Edgbaston, which is rapidly becoming a chic place to eat, drink and sleep."
Each of the hotels 12 bedrooms features a free-standing painted bath designed to evoke 'country house comfort'.
The opening marks a change of direction for the independent group, which runs 17 pubs across the South East and Midlands.