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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
- ◦Sale/Acquisition
