DiamondRock Hospitality Co. has acquired the fee-simple interest in The Bellmoor Inn & Spa, a 79-room resort in Rehoboth Beach, Del., for total consideration of $31 million, or approximately $392,000 per key. The acquisition was funded with cash on hand.
Based on the hotel's trailing twelve-month results that ended in August, the acquisition price represents a 10.4x hotel earnings before interest, taxes, depreciation or amortization multiple and an 8.6 percent capitalization rate on hotel net operating income. Following the implementation of the company's asset management initiatives and completion of planned off-season capital improvements, the hotel is projected to generate a stabilized hotel NOI yield of approximately 9.5 percent. The acquisition is not expected to have a material impact on the company's fourth-quarter 2026 earnings.
“The acquisition of The Bellmoor reflects our track record of leveraging long-standing relationships to uncover compelling investment opportunities,” said Jeffrey J. Donnelly, chief executive officer of DiamondRock Hospitality Company. “Southern Delaware is one of the East Coast's most attractive leisure lodging markets, drawing affluent repeat visitors from the Northeast Corridor and benefiting from significant barriers to new lodging supply. Combined with our attractive acquisition basis and proven asset management platform, we believe these enduring fundamentals position The Bellmoor to generate meaningful free cash flow growth and long-term value for our shareholders.”