DiamondRock sells hotel in New York City for $185m

DiamondRock sells hotel in New York City for $185m

DiamondRock Hospitality Company has completed the sale of the 725-room Lexington Hotel in New York City for $185.3 million. 

Including the company’s projected capital expenditures, the sale price represents a 14.2x multiple on 2019 Hotel EBITDA and a 5.4% capitalization rate on 2019 Hotel net operating income, the REIT said.

The company intends to redeploy the net proceeds from the sale to acquire high-growth experiential resort and urban lifestyle hotels aligned with its investment strategy.

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“We are pleased to announce the closing of this transaction, which right-sizes our portfolio’s exposure to New York City. This disposition also provides DiamondRock with significant investment capacity for on-strategy acquisitions,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company.