DiamondRock Hospitality Sells Oak Brook Hills Resort for $30M
Wednesday April 16th, 2014 - 10:52AM E
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CHICAGO—DiamondRock Hospitality Company has sold the 386-room Oak Brook Hills Resort, located in a suburb here, to an unaffiliated third party for $30.1 million, including $4 million of seller financing.
The Oak Brook Hills Resort generated approximately $1 million of Hotel Adjusted EBITDA and had negative net operating income during the trailing 12 months period ending March 31, 2014. The Hotel's Adjusted EBITDA was approximately $2 million for the full year in 2013.
"Over the past few years, we have transformed our portfolio through strategic divestitures and targeted acquisitions to sharpen our focus on premium lodging assets in urban gateway markets,” stated Mark W. Brugger, president and CEO of DiamondRock Hospitality Company.
He added, “We are pleased to announce the sale of the suburban Oak Brook Hills Hotel, illustrating our commitment to continuously prune the bottom-tier of our portfolio. The hotel was our least profitable hotel and had the lowest average revenue per available room within the portfolio. Our enhanced portfolio is well positioned to deliver strong returns across the entire lodging cycle.”
Tags: DiamondRock Hospitality • Hospitality • Acquisitions •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.