DiamondRock Hospitality Sells Oak Brook Hills Resort for $30M
Wednesday April 16th, 2014 - 10:52AM E
| | | | | | | | | | |
These are shortcuts to your favorite social networking and bookmark sites. Add this story to your Facebook page, del.icio.us, DiggIt, and many others!
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 •
For the past few years, the talk of The Lodging Conference in Phoenix had been focused on the economic recovery, solid industry projections and “cautious optimism.” With the word cautious no longer necessary, the economic outlook took a backseat this year to the seemingly unending parade of new lifestyle brands.