EBS STAFF
On Aug. 2, Maryland-based DiamondRock Hospitality Company announced they bought Chico Hot Springs Resort for $33 million. The lifestyle resort has been open since 1900 and features a lodge with dining options and hot spring pools at the base of Emigrant Peak in the Paradise Valley.
A press release from DiamondRock stated that the company bought the 117-room lodge and 153-acre resort for $27 million and an accompanying ranch on 585 acres for $6 million.
“We expect Chico will generate a 10.5% [net operating income] yield on the total $33 million purchase price upon stabilization,” the release stated.
In the release, DiamondRock included “forward-looking statements” about return on investment opportunities:
• Add additional cabins and experiential room types
• Introduction of a resort fee
• Internalize and expand spa operations
• Monetize excess land to reduce investment basis
• Add additional affordable workforce housing units
• Events & Tour partnership with adjacent Yellowstone Film Ranch
“The forward-looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to us,” the release stated.
DiamondRock owns 36 hotels totaling 9,700 rooms.
“The Company has installed a professional management company to execute its operating plan as well as to pursue many high return-on investment opportunities including additional rooms and glamping, affordable workforce housing, and renewable power,” the release stated.
