DiamondRock Picks Up Chelsea Hostelry for $68M

NEW YORK CITY-DiamondRock Hospitality Co. said Monday that it has acquired the 169-room Hilton Garden Inn Chelsea New York City from a joint venture of Inland America and Winston Hotels in an all-cash deal marking its third acquisition here. The $68.4-million purchase price represents a 12.9 multiple of 2010 EBITDA and a 7% capitalization rate on forecasted NOI for the year, says the Bethesda, MD-based DiamondRock.

In a release, DiamondRock CEO Mark Brugger says the three-year-old property in Manhattan’s Chelsea District was especially attractive to his company “because of its ability to charge essentially full-service room rates with a more profitable limited service cost structure as a result of its strong Hilton Garden Inn branding, access to Hilton Worldwide’s powerful reservations system and traveler loyalty generated from the Hilton guest rewards program.”