Diamondrock Acquires Chico Hot Springs Resort For $33M
Portfolio Pulse from Happy Mohamed
DiamondRock Hospitality Company (NYSE:DRH) has acquired Chico Hot Springs Resort and an adjacent ranch in Paradise Valley, Montana for $33 million. The acquisition was funded from corporate cash on hand. The company expects Chico to generate a 10.5% NOI yield on the total purchase price upon stabilization.

August 04, 2023 | 11:05 am
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POSITIVE IMPACT
DiamondRock's acquisition of Chico Hot Springs Resort could potentially increase its revenue and profitability in the long term. The company's ability to fund the acquisition from corporate cash indicates strong financial health.
The acquisition of Chico Hot Springs Resort by DiamondRock is a strategic move that could potentially increase the company's revenue and profitability in the long term. The fact that the company was able to fund the acquisition from corporate cash indicates strong financial health, which is a positive sign for investors. The expected 10.5% NOI yield on the total purchase price upon stabilization also suggests that the investment could be profitable.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100