DIAMONDROCK HOSPITALITY COMPANY ACQUIRES THE BELLMOOR INN & SPA

The purchase price equates to approximately $392,000 per room.

Rhea-AI Summary

DiamondRock Hospitality Company (DRH) acquired The Bellmoor Inn & Spa in Rehoboth Beach, Delaware, for total consideration of $31.0 million. The cash-on-hand purchase secured fee simple ownership of the 79-room resort, meaning ownership of the property rather than a leasehold interest. The price represents 10.4 times Hotel EBITDA, an operating earnings measure, and an 8.6% capitalization rate based on Hotel net operating income.

For the unaudited trailing twelve months ended August 31, 2026, the hotel recorded $1.6 million in net income, $3.0 million in Hotel EBITDA and $2.7 million in Hotel net operating income. DiamondRock projects a stabilized net operating income yield of approximately 9.5% following asset management initiatives and planned off-season capital improvements, and expects no material impact on fourth-quarter 2026 earnings.

6 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point$31.0 million acquisition adds fee simple ownership of the 79-room Bellmoor resort. 1.2% of market cap
• Minor point8.6% capitalization rate and 10.4x Hotel EBITDA multiple reflect trailing twelve-month results ended August 2026.
• Minor point$1.6 million hotel net income recorded for the unaudited trailing twelve months ended August 31, 2026.
• Minor point$3.0 million Hotel EBITDA recorded for the unaudited trailing twelve months ended August 31, 2026.
• Minor point$2.7 million hotel net operating income recorded for the unaudited trailing twelve months ended August 31, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Approximately 9.5% stabilized net operating income yield projected by DiamondRock.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Projected stabilized yield depends on asset management initiatives and completion of planned off-season capital improvements.

Key Figures

Acquisition consideration: $31.0 million Room count: 79 rooms Consideration per key: Approximately $392,000 per key +5 more

Acquisition consideration

$31.0 million

Total consideration for The Bellmoor

Room count

79 rooms

The Bellmoor Inn & Spa

Consideration per key

Approximately $392,000 per key

Acquisition price

Hotel EBITDA

$3.0 million

Trailing twelve months ended August 31, 2026

Hotel NOI

$2.7 million

Trailing twelve months ended August 31, 2026

Hotel EBITDA multiple

10.4x

Based on trailing twelve-month results ended August 2026

Capitalization rate

8.6%

Based on Hotel NOI

Stabilized Hotel NOI yield

Approximately 9.5%

Projected after asset management initiatives and planned off-season improvements

Key Terms

fee simple interest, hotel ebitda, capitalization rate, net operating income (noi), +1 more

5 terms

fee simple interest technical

"acquisition of the fee simple interest in The Bellmoor Inn"

Fee simple interest is the broadest form of private ownership in real estate, giving the holder near-complete control of land and buildings, including the right to use, sell, lease, or pass the property to heirs, subject only to laws, zoning, and taxes. For investors, it matters because fee simple ownership affects how easily a property can be valued, financed, transferred, or used as collateral—similar to holding the title to a car versus renting it.

hotel ebitda financial

"the acquisition price represents a 10.4x Hotel EBITDA multiple"

Hotel EBITDA is the operating profit a hotel generates before deducting interest, taxes, depreciation and amortization, showing the cash earned from running the rooms, food and services without counting financing costs or accounting for building wear. Investors use it to compare how well different hotels or brands perform, estimate property value and judge whether a hotel can cover debt and pay owners — like looking at how much cash a store makes before paying rent, loans and replacing old equipment.

capitalization rate financial

"and an 8.6% capitalization rate on Hotel net operating income"

The capitalization rate is a percentage that helps investors estimate how much money a property or investment might generate relative to its value. It’s similar to a return rate, showing how quickly an investment could pay for itself over time. This rate helps compare different investments and assess their potential profitability.

net operating income (noi) financial

"capitalization rate on Hotel net operating income (NOI)"

Net operating income (NOI) is the money a property or business generates from its regular operations after paying direct operating costs (like maintenance, utilities, and staff) but before paying financing costs, taxes, or accounting write‑downs. Investors use NOI to judge how well an asset produces cash from its core activity—think of it as the profit from running a store before paying the mortgage and taxes—so it helps compare properties and value income-producing investments.

non-gaap financial

"Hotel EBITDA and Hotel NOI are non-GAAP financial measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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BETHESDA, Md., Oct. 8, 2026 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") announced today its acquisition of the fee simple interest in The Bellmoor Inn & Spa (the "Hotel" or "The Bellmoor"), a 79-room luxury resort in Rehoboth Beach, Delaware, for total consideration of $31.0 million, or approximately $392,000 per key. The acquisition was funded with cash on hand and represents an attractive opportunity to acquire an independent resort in a supply-constrained market with strong in-place cash flow and meaningful operational upside.

Based on the Hotel's trailing twelve-month results ended August 2026, the acquisition price represents a 10.4x Hotel EBITDA multiple and an 8.6% capitalization rate on Hotel net operating income (NOI). Following the implementation of the Company's asset management initiatives and completion of planned off-season capital improvements, the Hotel is projected to generate a stabilized Hotel NOI yield of approximately 9.5%. The acquisition is not expected to have a material impact on the Company's fourth quarter 2026 earnings.

"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," said Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company.

ABOUT THE COMPANY

DiamondRock Hospitality Company (Nasdaq: DRH) is a self-advised real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 35 premium quality hotels and resorts with 9,479 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. 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, those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 27, 2026 and our Quarterly Reports on Form 10-Q filed on April 30, 2026 and July 30, 2026. 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 our expectations.

Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel NOI

The following table is a reconciliation of the Hotel's GAAP net income to Hotel EBITDA and Hotel NOI.  Hotel NOI represents Hotel EBITDA after the deduction of a capital reserve equal to 4% of Hotel revenues (in millions).

	Trailing Twelve Months Ended August 31, 2026
	(unaudited)
Hotel Net Income	$                   1.6
Depreciation and amortization	1.4
Hotel EBITDA	3.0
Capital reserve	(0.3)
Hotel NOI	$                   2.7

Hotel EBITDA and Hotel NOI are non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) Rules. The Company's presentation of Hotel EBITDA and Hotel NOI should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of a hotel's financial performance. The Company presents Hotel EBITDA and Hotel NOI because it believes these measures provide investors and analysts with an understanding of hotel-level operating performance.

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SOURCE DiamondRock Hospitality Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did DiamondRock pay for The Bellmoor Inn & Spa, and how was it funded?

DiamondRock acquired The Bellmoor for $31.0 million, or approximately $392,000 per room, using cash on hand. The acquisition covers the fee simple interest in the 79-room resort in Rehoboth Beach, Delaware.

How is Hotel net operating income calculated for DiamondRock's Bellmoor acquisition?

Hotel net operating income equals Hotel EBITDA less a capital reserve equal to 4% of hotel revenues. For the unaudited trailing twelve months ended August 31, 2026, Hotel EBITDA was $3.0 million, the capital reserve was $0.3 million and Hotel net operating income was $2.7 million. Both operating measures are non-GAAP measures, not substitutes for net income.