DiamondRock Adds to Hotel Portfolio
- Mar 02, 2018
DiamondRock Hospitality Co. has purchased The Landing Resort & Spa, a 77-key luxury resort in Lake Tahoe, Calif. for $42 million or $545,000 per key. The acquisition represents a 7 percent yield on 2017 Hotel Adjusted EBITDA. The company funded the acquisition with existing corporate cash.
At 4104 Lakeshore Blvd., The Landing occupies a lakeside location within two minutes of the Lincoln Highway, which provides access to Lake Tahoe Airport, offering 120 flights per day. Besides this, the hotel is close to the city’s nightlife venues including casinos, restaurants and shopping centers, as well as Heavenly Village and the Heavenly Mountain Ski Resort gondola. Amenities of the resort include:
- spa and fitness center
- indoor and outdoor function space
- rooftop deck
- outdoor pool and hot tub
“This acquisition is well-aligned with our capital allocation strategy and increases our portfolio’s exposure to resorts, West Coast markets, and independent operators. Furthermore, we see numerous opportunities to enhance performance through the implementation of our asset management best practices and our ROI capital plan,” said Mark Brugger, president & chief executive officer of DiamondRock Hospitality Co., in prepared remarks.
Image courtesy of DiamondRock Hospitality Co.