BETHESDA, Maryland—DiamondRock Hospitality Company announced that on Feb. 19, 2025, it 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 percent capitalization rate on 2024 hotel net operating income, or a capitalization rate of 5.6 percent 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 percent capitalization rate on 2024 hotel net operating income, or a capitalization rate of 5.2 percent inclusive of the company’s projected capital expenditures.
“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 J. Donnelly, CEO, DiamondRock Hospitality Company.
