SIGNIFICANT OPPORTUNITIES FOR VALUE CREATION IN OPERATIONS & SYNERGIES
BETHESDA, MD., May 5, 2022 /PRNewswire/ — DiamondRock Hospitality Company (the “Company” or “DiamondRock”) (NYSE: HRD) announced today that it has acquired a fee simple interest in The Kimpton Fort Lauderdale Beach Resort, a resort in boutique style at Fort Lauderdale, Floridafor a total investment of $35.3 million ($367,700/key). The resort will be operated by HEI Hotels & Resorts under a franchise agreement with Kimpton Hotels & Restaurants.
“This acquisition marks our 14and resort, and we are extremely excited to add Kimpton Fort Lauderdale Beach Resort to our portfolio and expand DiamondRock’s leadership with the preeminent portfolio of leisure and lifestyle-focused hotels and resorts,” said Mark W. Brugger, President and CEO of DiamondRock Hospitality Company. “The resort was acquired in an off-market transaction at a significant discount to recently completed on-market transactions. We plan to capitalize on the synergies by entrusting HEI Hotels & Resorts with the management of this resort in addition management of the Westin Fort Lauderdale Beach Resort at nearby DiamondRock There are significant opportunities to create value by leveraging our industry-leading resort expertise to improve revenue management and fundamentally reprogram the bar on the rooftop and restaurant underutilized.”
The Company purchased the 96-room Kimpton Fort Lauderdale Beach Resort from Fort Lauderdale, Florida on April 1, 2022. The resort reopened in mid-2021 after a comprehensive reconstruction that fully upgraded the resort to current building codes while preserving its iconic Art Deco architecture. The station offers many competitive advantages:
- Area dedicated to the seafront
- Rooftop bar and pool with panoramic views of the Intracoastal Waterway
- Intimate open-air restaurant and bar on the ground floor with lush courtyard pool
- Significant brand distribution potential as the only property affiliated with IHG Hotels & Resorts and Kimpton in Fort Lauderdale Beach
- Architecturally unique Art Deco style with historic elements and modern amenities
DiamondRock’s acquisition also includes ownership of a 230-space parking lot supporting both the resort as well as the adjacent Tiffany House residences. Although not factored into our underwriting, we believe there is a significant opportunity to generate high margin revenue from parking as well as creating a rental management agreement program for landlords of units in the 129 units Tiffany House. Additionally, we believe the rooftop can provide a significant opportunity to add clean energy solar panels to reduce annual electricity costs and the complex’s carbon footprint.
About the company
DiamondRock Hospitality Company is a self-administered real estate investment trust (REIT) that owns a leading portfolio of geographically diverse hotels concentrated in major gateway markets and resort destinations. The company currently owns 34 premium hotels and resorts with over 9,500 rooms. The company has strategically curated its portfolio to consist of unique lifestyle properties, as well as those enhanced by leading global brands. For more information about the company and its portfolio, please visit the DiamondRock Hospitality Company 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 words and phrases such as “believe”, “expect”, “intend”, “project”, “plan”, “plan” and other similar terms and expressions, 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 that may cause 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; operational risks related to the hotel business; the risks associated with the Company’s level of indebtedness; relationships with property managers; the ability to be competitive in areas such as access, location, quality of accommodations and room rate structures; changes in travel habits, taxes and government regulations that 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 that the expectations reflected in these forward-looking statements are based on reasonable assumptions, it cannot guarantee that the expectations will be achieved or that any deviations will not be material. All information contained in this release speaks as of the date of this release, and the Company undertakes no obligation to update any forward-looking statements to conform to actual results or to changes in the Company’s expectations.
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SOURCE DiamondRock Hospitality Company