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Florida & Gulf Coast  + Gulf Coast  + Hospitality  | 
Henderson Beach Resort in Destin, FL

DiamondRock Spends $176M to Acquire Resorts at FL’s Far Ends

Bethesda, MD-based DiamondRock Hospitality Company has acquired the 170-room Henderson Beach Resort in Destin, FL for $112.5 million in an off-market transaction.

At the other end of the state, the company has purchased the 103-unit Tranquility Bay Beachfront Resort in Marathon, FL for $63 million.

“These investments cap off an active year where DiamondRock recycled $220 million from low-yield, encumbered, capital-intensive properties into $293 million of high-quality, unencumbered, independent hotels and resorts,” said Mark Brugger, DiamondRock president and CEO.

Henderson Beach Resort is adjacent to the oceanfront Henderson Park Inn, which was acquired by DiamondRock earlier in 2021. According to the company, the purchase price of Henderson Beach Resort represents a 6.4% yield on 2021 forecasted hotel net operating income and is expected to stabilize above an 8.0% yield. The purchase price of Tranquility Bay Beachfront Resort represents an 11.5% yield on 2021 forecasted hotel net operating income.

Photo: Henderson Beach Resort

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DiamondRock Hospitality Company’s Brugger

About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

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