DiamondRock Hospitality Company has closed on the acquisition of The Westin Beach Resort & Spa, Fort Lauderdale for $149.0 million, or $345,000 per room. The purchase price represents a 12.0 to 12.5 multiple on the company's projected 2015 EBITDA. HEI Hotels & Resorts will operate the hotel.
"We are pleased to add The Westin Beach Resort & Spa, Fort Lauderdale to our portfolio. This acquisition represents the successful recycling of capital from slower growth assets into a high-quality hotel located in a high-growth, target market," said Mark W. Brugger, president and CEO of DiamondRock Hospitality Company.
"We are excited to create a new partnership with DiamondRock Hospitality Company," said Ted Darnall, COO and principal of HEI Hotels & Resorts. "The Westin Beach Resort & Spa, Fort Lauderdale exhibits both margin expansion opportunities and strong long-term growth potential. We are eager to bring our proven industry and Westin brand expertise to the hotel."
The company expects the hotel to contribute approximately $0.5 million to the company's full-year 2014 adjusted EBITDA.