DiamondRock buys Bellmoor Inn for $31 million
- DiamondRock Hospitality (NYSE:DRH) acquired The Bellmoor Inn & Spa in Rehoboth Beach, Delaware, for $31 million.
- The 79-room hotel generated $3 million in Hotel EBITDA and $2.7 million in Hotel net operating income over the trailing 12 months.
- DiamondRock projects a stabilized net operating income yield of about 9.5% after planned improvements and asset-management initiatives.
DiamondRock Hospitality (NYSE:DRH) acquired the 79-room Bellmoor Inn & Spa in Rehoboth Beach, Delaware, for total consideration of $31.0 million using cash on hand.
The purchase secured fee simple ownership of the property and represents 10.4 times trailing Hotel EBITDA and an 8.6% capitalization rate based on Hotel net operating income.
For the unaudited 12 months ended August 31, 2026, the hotel generated $1.6 million in net income, $3.0 million in Hotel EBITDA and $2.7 million in Hotel net operating income.
DiamondRock plans off-season capital improvements and other asset-management initiatives at the property, which the company expects will support a stabilized net operating income yield of approximately 9.5%.
The company said the acquisition is not expected to have a material effect on fourth-quarter 2026 earnings.
The Bellmoor Inn & Spa adds a resort property in Rehoboth Beach to DiamondRock’s lodging portfolio and gives the company direct ownership of the underlying real estate.
DiamondRock’s projected 9.5% stabilized yield remains a company estimate and depends on the results of its planned capital investments and operating initiatives.
