DiamondRock Hospitality Company acquired The Bellmoor Inn & Spa in Rehoboth Beach, Delaware, for $31 million. The transaction values the 79-room luxury resort at approximately $392,000 per room.
DiamondRock funded the acquisition with cash on hand.
The company said the deal gives it an independent resort property in a supply-constrained leisure market with existing cash flow and additional operating upside.
Based on trailing 12-month results through August 2026, the purchase price represents a 10.4x Hotel EBITDA multiple.
The transaction also implies an 8.6% capitalization rate based on hotel net operating income.
The Bellmoor generated approximately $3 million of Hotel EBITDA and $2.7 million of Hotel NOI over that period.
DiamondRock plans to implement asset management initiatives and complete off-season capital improvements.
Following those investments, the company expects the property to generate a stabilized Hotel NOI yield of approximately 9.5%.
The acquisition is not expected to have a material impact on DiamondRock’s fourth-quarter 2026 earnings.
DiamondRock owns 35 hotels and resorts totaling 9,479 rooms.
Its portfolio includes properties in leisure destinations and major gateway markets, with both global hotel brands and independent boutique hotels.
KEY QUOTES:
“The acquisition of The Bellmoor reflects our track record of leveraging long-standing relationships to uncover compelling investment opportunities.”
Jeffrey J. Donnelly, CEO of 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.”
Jeffrey J. Donnelly, CEO of DiamondRock Hospitality Company
“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.”
Jeffrey J. Donnelly, CEO of DiamondRock Hospitality Company
