DiamondRock Sells Courtyard Manhattan Fifth Avenue for 33 M$ (Union · Leasehold)

DiamondRock Hospitality Company (DRH) has agreed to the sale of the Courtyard by Marriott New York Manhattan/Fifth Avenue hotel, located in Midtown Manhattan (New York), to an undisclosed buyer for 33 M$.

Transaction metrics: total price, 33 M$ · price per key, 174.603 $ · price per area, approximately 391 $/SF (4.204 $/m²) on ~84.500 SF (~7.850 m²) of built area · 189 keys.

Parties: buyer, undisclosed · seller, DiamondRock Hospitality Company (DRH).

Background: In 2004, DiamondRock Hospitality acquired the asset from ING Realty Partners for 34,4 M$. The building dates to 1988, opened as a hotel in 1990, operates under the Courtyard brand, and is managed by Highgate Hotels L.P.

Ownership and labor: leasehold (ground lease) · unionized workforce (union).

Analysis: the divestment of this property operated under the Courtyard by Marriott brand in the Midtown submarket sets the initial yield at a 13,3% cap rate on 2025 NOI; DiamondRock estimates the stabilized cap rate at around 7,8% (6,5% on a fee-simple basis), reflecting the seller's portfolio repositioning within Manhattan's competitive select-service segment.