DiamondRock buys the Shorebreak Hotel in Huntingdon Beach

US: DiamondRock Hospitality Company has acquired the Shorebreak Hotel in Huntington Beach, California, for $58.5 million.

US: DiamondRock Hospitality Company has acquired the Shorebreak Hotel in Huntington Beach, California, for $58.5 million.

The Shorebreak Hotel was constructed and opened six years ago and is a premier beachfront hotel located on the Pacific Coast Highway. Designed as a surfing-inspired resort, the Hotel features 157 guestrooms, including 37 suites, and the Zimzala Restaurant & Bar.

DiamondRock has appointed Kimpton to operate the property. The purchase price represents a 12.8 multiple on 2015 forecasted EBITDA.

Mark W. Brugger, president and chief Executive officer of DiamondRock Hospitality Company, said: “We are thrilled to announce our acquisition of the Shorebreak Hotel.  This was a rare opportunity to buy a truly unique beachfront property in one of Southern California’s premier resort destinations.  With ten miles of pristine beaches, Huntington Beach is one of the highest-rated markets in the country, with excellent RevPAR growth potential and high barriers to entry.”

“We believe there is untapped potential at this asset and have brought in Kimpton Hotels & Restaurants as the new manager.  Kimpton has a strong track record of operating popular, successful hotels throughout Southern California, including desirable beach destinations, which made them a natural choice for us with this exciting new property,” he added.

In the twelve-month period ended December 31, 2014, the Shorebreak Hotel achieved a RevPAR of $176 from a combination of 83 per cent occupancy and an ADR of more than $213. The Hotel achieved a compound annual RevPAR growth rate since it has opened of approximately 15 per cent.

www.drhc.com
www.KimptonHotels.com

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