In Brief: DiamondRock Hospitality Company acquired the fee-simple interest in The Bellmoor Inn & Spa, a 79-room resort in Rehoboth Beach, Delaware, for $31 million.
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Image Credit The Bellmoor Inn & Spa
DiamondRock Hospitality Company acquired The Bellmoor Inn & Spa for $31 million, or approximately $392,000 per key. The transaction covers the fee-simple interest in the 79-room property in Rehoboth Beach, Delaware.
DiamondRock funded the acquisition with cash on hand, and it is not expected to materially affect its fourth-quarter 2026 earnings.
Based on the hotel’s trailing 12-month results ended Aug. 31, 2026, the purchase price represented a 10.4-times hotel EBITDA multiple and an 8.6% capitalization rate on hotel net operating income. The hotel reported unaudited net income of $1.6 million for the period.
Depreciation and amortization totaled $1.4 million during the trailing 12-month period, resulting in hotel EBITDA of $3 million. After a $300,000 capital reserve (4% of hotel revenues), hotel net operating income totaled $2.7 million.
DiamondRock plans to implement asset management initiatives and complete off-season capital improvements at the hotel. Following those actions, the hotel is projected to generate a stabilized hotel net operating income yield of approximately 9.5%.