DiamondRock sells interest in Courtyard by Marriott New York for $33M

DiamondRock (DRH) announced the sale of its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan/Fifth Avenue for $33.0M. The sales price represents a 6.3x multiple on 2025 Hotel Adjusted EBITDA and a 13.3% capitalization rate on 2025 Hotel Net Operating Income. Inclusive of $12M of capital expenditures required to be spent in the next 12 months, a contractual increase in the ground lease payment, and higher labor costs over the next several years, the company estimates the stabilized capitalization rate on the sale to be approximately 7.8%, or 6.5% on a fee simple basis. After adjusting for the hotel sale, the company is lowering its AFFO guidance for 2026 from $1.12-$1.18 to $1.10-$1.16