DiamondRock Hospitality Company (NYSE:DRH) announced today the sale of its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan\/Fifth Avenue for $33 million. <\/p>\n
The transaction price reflects a 6.3x multiple on the hotel\u2019s 2025 adjusted EBITDA and a 13.3% capitalization rate on its 2025 Net Operating Income (NOI).<\/p>\n
The strategic divestiture was driven by a combination of structural expense headwinds and looming reinvestment needs. <\/p>\n
Management identified $12 million in required capital expenditures over the next 12 months, alongside a contractual increase in ground-lease payments and rising labor costs. <\/p>\n
When accounting for these factors, the company estimated the stabilized capitalization rate on the sale to be approximately 7.8%.<\/p>\n
As a result of the sale, DiamondRock has revised its full-year 2026 financial guidance, which was initially provided on April 30. <\/p>\n
While the company maintained its Comparable RevPAR growth targets, it lowered its profitability and cash flow expectations to account for the loss of the New York asset.<\/p>\n
The company intends to deploy the proceeds from the sale opportunistically, which may include further debt reduction or share repurchases under its recently authorized $300 million program.<\/p>\n","protected":false},"excerpt":{"rendered":"DiamondRock Hospitality Company (NYSE:DRH) announced today the sale of its leasehold interest in the 189-room Courtyard by Marriott…\n","protected":false},"author":2,"featured_media":219319,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[86391,86388,86384,86385,86390,86386,75,84,83,9,24,63,86387,86389],"class_list":["post-219318","post","type-post","status-publish","format-standard","has-post-thumbnail","category-manhattan","tag-adjusted-ffo-guidance","tag-courtyard-manhattan-fifth-avenue","tag-diamondrock-hospitality-earnings-2026","tag-drh-stock-news","tag-hotel-cap-rates","tag-jeffrey-donnelly","tag-manhattan","tag-manhattan-headlines","tag-manhattan-news","tag-new-york","tag-new-york-city","tag-nyc","tag-nyc-hotel-sale","tag-reit-capital-recycling"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/219318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=219318"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/219318\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/219319"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=219318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=219318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=219318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}