DiamondRock Agrees to Acquire 712-Room Hotel Lexington in Midtown New York for $335M

DiamondRock Hospitality Company DRH today announced that it has entered into a purchase and sale agreement to acquire the 712-room Radisson Lexington Hotel New York for a contractual purchase price of $335 million. The contractual purchase price represents a 13.5 times multiple of 2012 forecasted EBITDA of $24.8 million and a 6.7% capitalization rate on forecasted 2012 net operating income. During the Company's anticipated 2011 period of ownership, the Hotel is expected to earn approximately $15.8 million in EBITDA.