DiamondRock Hospitality Company acquired the fee simple interest in The Bellmoor Inn & Spa, a 79-room luxury resort located in Rehoboth Beach, Delaware, with the deal completed by October 8, 2026. The acquisition price was $31.0 million, funded with cash on hand.
Acquisition Financial Metrics
The acquisition price equates to approximately $392,000 per key and represents a 10.4x Hotel EBITDA multiple based on trailing twelve-month results ended August 2026. It also reflects an 8.6% capitalization rate on Hotel net operating income (NOI), with the hotel projected to generate a stabilized NOI yield of approximately 9.5% following asset management initiatives and planned off-season capital
improvements.
DiamondRock’s Portfolio and Market Position
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) listed on Nasdaq as DRH, currently owning 35 hotels and resorts with 9,479 rooms. Its geographically diversified portfolio is concentrated in leisure destinations and top gateway markets. The company operates hotels under both leading global brand families and independent boutique hotels in the lifestyle segment.
Southern Delaware Market Characteristics
The acquisition adds to DiamondRock’s presence in Southern Delaware, considered one of the East Coast’s most attractive leisure lodging markets. The region benefits from significant barriers to new lodging supply and draws affluent repeat visitors from the Northeast Corridor.
Company Leadership on Acquisition
Jeffrey J. Donnelly, CEO
of DiamondRock Hospitality Company, said, “The acquisition of The Bellmoor reflects our track record of leveraging long-standing relationships to uncover compelling investment opportunities. 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. 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.”
