DivestmentMay 4, 2026, 07:37 AM
DiamondRock Sells NYC Hotel for $33M; Adjusts 2026 Guidance
AI Summary
DiamondRock Hospitality Co. announced the sale of its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan/Fifth Avenue for $33.0 million, completed on May 1, 2026. The company stated this divestment reflects disciplined capital allocation and a focus on growing free cash flow per share, despite the hotel's Net Operating Income more than doubling from 2019 to 2025. Consequently, DiamondRock adjusted its full-year 2026 guidance, lowering Adjusted EBITDA by $5.9 million and Adjusted FFO per share by $0.025.
Key Highlights
- DiamondRock sold its leasehold interest in the Courtyard by Marriott New York Manhattan/Fifth Avenue for $33.0 million.
- The sale represents a 6.3x multiple on 2025 Hotel Adjusted EBITDA and a 13.3% capitalization rate on 2025 Hotel Net Operating Income.
- Full-year 2026 Adjusted EBITDA guidance was revised down by $5.9 million to $290.2 million-$302.2 million.
- Full-year 2026 Adjusted FFO guidance was revised down by $5.1 million to $228.4 million-$240.4 million.
- Full-year 2026 Adjusted FFO per share guidance was revised down by $0.025 to $1.10-$1.16.
- The divested hotel's Net Operating Income more than doubled from 2019 to 2025.
- The company currently owns 34 hotels and resorts with 9,400 rooms.