DiamondRock Hospitality Company has completed the sale of the Oak Brook Hills Resort, located in a suburb of Chicago. The REIT sold the 386-room hotel to an unaffiliated third party for $30.1 million, including $4.0 million of seller financing.
"Over the past few years, we have transformed our portfolio through strategic divestitures and targeted acquisitions to sharpen our focus on premium lodging assets in urban gateway markets. We are pleased to announce the sale of the suburban Oak Brook Hills Hotel, illustrating our commitment to continuously prune the bottom-tier of our portfolio. The hotel was our least profitable hotel and had the lowest average revenue per available room within the portfolio. Our enhanced portfolio is well positioned to deliver strong returns across the entire lodging cycle," said Mark W. Brugger, CEO of DiamondRock Hospitality Company.
The Oak Brook Hills Resort generated approximately $1.0 million of hotel adjusted EBITDA and had negative net operating income during the trailing 12 months period ending March 31, 2014.