BETHESDA, MD – DiamondRock Hospitality Company has completed the sale of the 410-room Westin Washington, D.C. City Center for a contract price of $92.0 million.
The sales price represents an 11.2x multiple on 2024 Hotel EBITDA and a 7.5% capitalization rate on 2024 Hotel net operating income, or a capitalization rate of 5.6% inclusive of the Company’s projected capital expenditures. Excluding a one-time property tax credit and temporary discount on franchise fees the Hotel received in 2024, the sales price represents an 11.9x multiple on 2024 Hotel EBITDA and a 7.0% capitalization rate on 2024 Hotel net operating income, or a capitalization rate of 5.2% inclusive of the Company’s projected capital expenditures.
Columbia Sussex Corp. was the buyer of the Westin DC according to CoStar. [Photo above: Marriot] The hotel had revenues of $32.5 million in 2024 and net income of $3.9 million.
“The sale of the Westin D.C. City Center marks an important step in our strategy to drive long-term earnings and cash flow per share growth and we plan to prudently redeploy the proceeds to create exceptional value for our shareholders,” said Jeffrey Donnelly, Chief Executive Officer of DiamondRock Hospitality Company.
