DiamondRock Hospitality sells Courtyard by Marriott for $33M

By Chris Stiles • Monday, May 04 11:57 • Permanent Link

DiamondRock Hospitality sold its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan/Fifth Avenue for $33.0 million.

The company said the sale price equals 6.3 times 2025 hotel adjusted EBITDA and a 13.3% capitalization rate on 2025 hotel net operating income. DiamondRock also said that, after factoring in about $12 million of capital spending expected over the next 12 months, a contractual increase in ground lease payments, and higher labor costs, the stabilized capitalization rate on the sale was about 7.8%, or 6.5% on a fee-simple basis.

The hotel’s net operating income more than doubled from 2019 to 2025, according to the company.

DiamondRock trimmed its 2026 guidance to reflect the sale. Adjusted EBITDA was reduced by $5.9 million, to a new range of $290.2 million to $302.2 million from $296 million to $308 million. Adjusted FFO was cut by $5.1 million, to $228.4 million to $240.4 million from $233.5 million to $245.5 million. Adjusted FFO per share was lowered by 2.5 cents, to $1.10 to $1.16 from $1.12 to $1.18.

The company left its 2026 comparable RevPAR growth outlook unchanged at 1.5% to 3.5%, and comparable total RevPAR growth unchanged at 1.75% to 3.75%.

DiamondRock said it currently owns 34 hotels and resorts with 9,400 rooms. Today the company's shares have moved 0.79% to a price of $10.22. If you want to know more, read the company's complete 8-K report here.

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