LOS ANGELES—Maryland-based DiamondRock has sold the Los Angeles Airport Marriott Hotel for $160 million to Chinese developer XLD Group, which plans to invest an additional $15 million to renovate the property. According to sources unrelated to the deal, this is the largest hotel transaction of the year.

As part of the transaction, XLD Group paid off the hotel’s $86 million mortgage plus an additional $1.5 million defeasance cost. The total cost of the hotel, including the $15 million in capital improvements, equates to a 6% cap rate, or a 6.6% cap rate with the additional capital investment excluded The hotel has a $10.5 million operating income for the 12-month period from September 30, 2013 to September 30, 2014. Although DiamondRock does expect to record a gain on the sale, it plans to exclude it and its defeasance cost from its adjusted EBITDA and adjusted FFO.

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