Business
DIAMONDROCK HOSPITALITY COMPANY COMPLETES SALE OF THE WESTIN WASHINGTON, D.C. CITY CENTER
BETHESDA, Md., Feb. 19, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced today that on February 19, 2025, it
About this update from Diamondrock Hospitality Company
[{"type":"text","content":"BETHESDA, Md., Feb. 19, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the \"Company\") (NYSE: DRH) announced today that on February 19, 2025, it completed the sale of the 410-room Westin Washington, D.C. City Center (the \"Hotel\") for a contract price of $92.0 million. The sales price represents an 11.2x multiple on 2024 Hotel EBITDA and a 7.5% capitalization rate on 2024 Hotel net operating income, or a capitalization rate of 5.6% inclusive of the Company's projected capital expenditures. Excluding a one-time property tax credit and temporary discount on franchise fees the Hotel received in 2024, the sales price represents an 11.9x multiple on 2024 Hotel EBITDA and a 7.0% capitalization rate on 2024 Hotel net operating income, or a capitalization rate of 5.2% inclusive of the Company's projected capital expenditures.\n\n \n \n \n \n \n \n\n \n\"The sale of the Westin D.C. City Center marks an important step in our strategy to drive long-term earnings and cash flow per share growth and we plan to prudently redeploy the proceeds to create exceptional value for our shareholders,\" said Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company.\nAbout the Company\nDiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels and resorts with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.\n \nReconciliation of Hotel Net Income to Hotel Net Operating Income\n(Unaudited, in millions)\nHotel net income\n$ 3.9\nAdjustment:\nDepreciation and amortization\n4.3\nHotel EBITDA\n$ 8.2\nAdjustment:\nCapital reserve \n(1.3)\nHotel net operating income\n$ 6.9\nHotel revenues\n$ 32.5\nHotel EBITDA and net operating income are non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) Rules. The Company's presentation of the Hotel's forecasted EBITDA and forecasted net operating income after capita...