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.
“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.