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DiamondRock Hospitality Sells Westin DC Hotel for $92M
DiamondRock Hospitality Company has completed the sale of the 410-room Westin Washington, D.C. City Center for $92 million.
“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.
The sale price for the hotel is based on an 11.2x multiple of the hotel’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2024, and a 7.5% capitalization rate on the hotel’s net operating income for the same year.
Excluding a one-time property tax credit and temporary discount on franchise fees, the sales price is based on an 11.9x multiple of the 2024 Hotel EBITDA, and a 7% capitalization rate on the net operating income. When factoring in the company’s projected capital expenditures, the capitalization rate was 5.2%.
