DiamondRock Hospitality Acquires Bellmoor Inn & Spa for $31 Million
DiamondRock Hospitality Company has acquired The Bellmoor Inn & Spa, a luxury resort in Rehoboth Beach, Delaware. The purchase price was $31 million or approximately $392,000 per room and is funded with cash on hand. This acquisition aligns with the company's strategy to invest in high-quality leisure destinations with strong operational potential. The Bellmoor represents a 10.4x EBITDA multiple based on its trailing twelve-month results as of August 2026, translating into an 8.6% capitalization rate on net operating income (NOI). The company anticipates that post-asset management initiatives and off-season improvements will increase the stabilized NOI yield to approximately 9.5%. While not expected to significantly impact Q4 earnings for 2026, this acquisition is seen as a strategic move in a supply-constrained market with strong visitor demand. Jeffrey J. Donnelly, CEO of DiamondRock Hospitality Company, emphasized that The Bellmoor's location and the company’s asset management capabilities position it to deliver long-term value through free cash flow growth.
Tickers: $DRH
Topics: Hospitality Industry M&A Real Estate