Authentic Western Resort Near Yellowstone
National Park
BETHESDA, Md., Aug. 2, 2023
/PRNewswire/ -- DiamondRock Hospitality Company (the "Company")
(NYSE:DRH) today announced that it has acquired the fee-simple
interest in the Chico Hot Springs Resort (the "Resort"), a
lifestyle resort in Paradise Valley,
Montana and near Yellowstone
National Park. The purchase price for the Resort and
adjacent ranch (collectively, "Chico") is $33 million. Chico was acquired from an
individual owner-operator and is an independent resort, completely
unencumbered by brand and management agreements.
The $27 million purchase price for
the 117-room, 153-acre Resort represents an 8.1% capitalization
rate on 2022 net operating income ("NOI"). Year-to-date comparable
RevPAR growth through the second quarter 2023 was 8.7%. The
adjacent ranch, a 595-acre parcel purchased for approximately
$6 million, provides extensive
on-site trails for hiking and horseback riding as well as potential
for future expansion of the Resort or residential lot sales. We
expect Chico will generate a 10.5% NOI yield on the total
$33 million purchase price upon
stabilization. The acquisition was funded from corporate cash on
hand.
"Chico Hot Springs Resort is another example of DiamondRock's
leadership in identifying attractive investment opportunities that
align with our focus on unique, leisure-oriented experiential
hotels and resorts," said Mark W. Brugger, President and Chief
Executive Officer of DiamondRock Hospitality Company. "Acquiring
owner-operated properties in unique markets often allows
DiamondRock to achieve superior returns on high quality real
estate. Moreover, Chico has numerous of the attractive attributes
we target, such as durable cash flow, significant ROI
opportunities, irreplaceable location, fee-simple and fully
unencumbered by brand and management."
About Chico Hot Springs Resort
Chico Hot Springs Resort is an authentic western-style resort
situated in the heart of Montana's
stunning Paradise Valley and convenient to the only year-round
vehicle entrance to Yellowstone National
Park. Situated at the base of Emigrant Peak, this
four-season, full-service resort offers miles of trails for hiking,
mountain biking, horseback riding as well as expeditions for
world-class fly fishing, dog sledding, rock climbing and
cross-country skiing. Two open-air natural mineral hot springs
provide guests an opportunity to soak, swim and play all year long,
and the same springs provide environmentally friendly geothermal
energy to the property. The resort offers a variety of
accommodation options -ranging from the authentic historic lodge to
luxurious cabins and chalets to glamping opportunities overlooking
Paradise Valley. The Resort has three dining outlets, including the
authentic Chico Saloon and fine dining in the Historic Dining Room
led by a James Beard Award
semi-finalist. The restaurant is considered one of the region's
best restaurants and is consistently awarded Wine
Spectator's Best of Award of Excellence.
The Resort and adjacent ranch, in total, comprise 748 acres of
land that provide numerous recreation options as well as
exceptional vistas from the property. We believe there is a
significant opportunity to enhance revenues, implement yield
management, and broaden distribution channels. The Company has
installed a professional management company to execute its
operating plan as well as to pursue many high return-on-investment
opportunities including additional rooms and glamping, affordable
workforce housing, and renewable power.
About the Company
DiamondRock Hospitality Company is a self-advised real estate
investment trust (REIT) that is an owner of a leading portfolio of
geographically diversified hotels concentrated in top gateway
markets and destination resort locations. The Company currently
owns 36 premium quality hotels and resorts with over 9,700 rooms.
The Company has strategically curated its portfolio to be comprised
of unique lifestyle properties, as well as those enhanced by
leading global brands. For further information on the Company and
its portfolio, please visit DiamondRock Hospitality Company's
website at www.drhc.com.
This press release contains forward-looking statements within
the meaning of federal securities laws and regulations. These
forward-looking statements are identified by their use of terms and
phrases such as "believe," "expect," "intend," "project,"
"forecast," "plan" and other similar terms and phrases, including
references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially
from those anticipated at the time the forward-looking statements
are made. These risks include, but are not limited to: national and
local economic and business conditions; operating risks associated
with the hotel business; risks associated with the level of the
Company's indebtedness; relationships with property managers; the
ability to compete effectively in areas such as access, location,
quality of accommodations and room rate structures; changes in
travel patterns, taxes and government regulations which influence
or determine wages, prices, construction procedures and costs; and
other risk factors contained in the Company's filings with the
Securities and Exchange Commission. Although the Company believes
the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that
the expectations will be attained or that any deviation will not be
material. All information in this release is as of the date of this
release, and the Company undertakes no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in the Company's expectations.
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SOURCE DiamondRock Hospitality Company