BETHESDA, Md.—DiamondRock Hospitality Company has entered into a purchase and sale agreement to acquire the fee simple interest in The Westin Beach Resort & Spa in Fort Lauderdale, Fla., for a purchase price of $149 million (or $345,000 per guestroom). The transaction is expected to close during December 2014.
“The Westin Beach Resort & Spa, Fort Lauderdale represents a rare opportunity to acquire prime beachfront property in Southern Florida, a high-RevPAR, high-growth market. Not only is the hotel in very good condition, there is opportunity to implement our rigorous asset management initiatives to drive further upside and additional synergies at the hotel following acquisition,” said Mark W. Brugger, president and chief executive officer of DiamondRock Hospitality Company.
The hotel contains 432 guestrooms, 32,000 square feet of meeting space, and a modern spa. During 2009, the hotel underwent a comprehensive $86 million redevelopment project involving all areas of the hotel including the new construction of the Westin Conference Center building. The pool and deck were also redesigned as part of the redevelopment to add a new sushi bar and poolside private cabanas. The hotel is in excellent physical condition and the company does not anticipate any major capital improvements in the near-term. Although not included in the original underwriting of the deal, the company will evaluate several return on investment opportunities following acquisition.
The hotel is located in close proximity to the Fort Lauderdale-Hollywood Airport and the Port Everglades Cruise Terminal, a major tourism generator for the market. The hotel is also walking distance to the Fort Lauderdale marina, which hosts one of the world’s largest boat shows annually.