DiamondRock Hospitality Company completed the sale of the 410-room Westin Washington, D.C. City Center on February 19, 2025, for a contract price of $92.0 million. This transaction is a key step in the company's strategy to enhance long-term earnings and cash flow per share.
The sales price represents an 11.2x multiple on 2024 Hotel EBITDA and a 7.5% capitalization rate on 2024 Hotel net operating income. Excluding certain one-time items, the capitalization rate was 7.0% on 2024 Hotel net operating income.
The proceeds from this disposition are planned for prudent redeployment into higher return on investment opportunities. This aligns with DiamondRock's focus on harvesting capital from assets with lower free cash flow growth potential.
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