BETHESDA, MD—DiamondRock Hospitality Company has entered into a purchase and sale agreement to acquire the fee simple interest in The Westin Beach Resort & Spa, Fort Lauderdale in Florida for a purchase price of $149 million.
The purchase price represents a 12 to 12.5 multiple on the company’s projected 2015 hotel EBITDA. The transaction, which is subject to satisfaction of customary closing conditions, is expected to close in December.
“The Westin Beach Resort & Spa, Fort Lauderdale represents a rare opportunity to acquire prime beachfront property in southern Florida, a high-RevPAR, high-growth market. Not only is the hotel in very good condition, there is opportunity to implement our rigorous asset management initiatives to drive further upside and additional synergies at the hotel following acquisition,” said Mark W. Brugger, president and CEO of DiamondRock Hospitality Company.
The hotel, which features a beachfront location, contains 432 guestrooms, 32,000 sq. ft. of meeting space and a modern spa. During 2009, a comprehensive $86-million redevelopment project took place involving all areas of the hotel, including the new construction of the Westin Conference Center building. The pool and deck were also redesigned as part of the redevelopment to add a new sushi bar and private poolside cabanas.
The property is located in close proximity to Fort Lauderdale-Hollywood Airport and the Port Everglades Cruise Terminal, and is also walking distance to the Fort Lauderdale marina.