DiamondRock picks up Shorebreak in Calif., for $58.5M

DiamondRock Hospitality Company has recently acquired the Shorebreak Hotel in Huntington Beach, Calif., for a purchase price of $58.5 million.  The purchase price represents a 12.8 multiple on 2015 forecasted Hotel earnings before interest, taxes, depreciation and amortization (EBITDA).

Mark W. Brugger, president and CEO of DiamondRock Hospitality Company, said, "We are thrilled to announce our acquisition of the Shorebreak Hotel.  This was a rare opportunity to buy a truly unique beachfront property in one of Southern California's premier resort destinations.  With ten miles of pristine beaches, Huntington Beach is one of the highest-rated markets in the country, with excellent RevPAR growth potential and high barriers to entry.

"We believe there is untapped potential at this asset and have brought in Kimpton Hotels & Restaurants as the new manager.  Kimpton has a strong track record of operating popular, successful hotels throughout Southern California, including desirable beach destinations, which made them a natural choice for us with this exciting new property."

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The Shorebreak Hotel was constructed and opened six years ago, The hotel has 157 guestrooms, including 37 suites. 

Kimpton assumed management of the hotel upon the closing of the acquisition.

The acquisition of the Shorebreak Hotel brings the total number of properties in the company's portfolio to 28 and is the company's seventh resort property and fourth property located on the West Coast.

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The combined company, which will retain the Caesars name, will comprise 60 properties and more than 50,000 guestrooms.