The acquisition was funded with cash on hand and represents an attractive opportunity to acquire an independent resort in a supply-constrained market with strong in-place cash flow and meaningful operational upside.
Based on the hotel’s trailing 12-month results ended August 2026, the acquisition price represents a 10.4x hotel EBITDA multiple and an 8.6% capitalization rate on hotel net operating income (NOI). Following the implementation of the company’s asset management initiatives and completion of planned off-season capital improvements, the hotel is projected to generate a stabilized hotel NOI yield of approximately 9.5%. The acquisition is not expected to have a material impact on the company’s fourth quarter 2026 earnings.
“The acquisition of The Bellmoor reflects our track record of leveraging long-standing relationships to uncover compelling investment opportunities,” said Jeffrey J. Donnelly, CEO DiamondRock Hospitality Company. “Southern Delaware is one of the East Coast’s most attractive leisure lodging markets, drawing affluent repeat visitors from the Northeast Corridor and benefiting from significant barriers to new lodging supply. Combined with our attractive acquisition basis and proven asset management platform, we believe these enduring fundamentals position The Bellmoor to generate meaningful free cash flow growth and long-term value for our shareholders.”
