DiamondRock buys Kimpton-branded hotel in Fort Lauderdale for $19M

Banyan Investment Group sold 96-key property for $4M below its 2020 purchase price

Miami /
Apr.April 06, 2022 10:30 AM

DiamondRock Hospitality President and CEO Mark Brugger and the Kimpton Goodland Fort Lauderdale Beach at 2900 Riomar Street (Google Maps)

DiamondRock Hospitality added a second Fort Lauderdale property to its nationwide portfolio after buying a Kimpton-branded hotel for $18.9 million.

An entity managed by DiamondRock executives acquired the Kimpton Goodland Fort Lauderdale Beach at 2900 Riomar Street and the adjoining parking garage and amenity deck at 401 North Birch Road, according to records.

The deal for the 96-room hotel breaks down to roughly $197,604 per key.

The Bethesda, Maryland-based hospitality real estate investment trust also owns the Westin Fort Lauderdale Beach Resort, which is less than a half-mile east of the company’s latest acquisition.

An affiliate of Atlanta-based Banyan Investment Group sold the Kimpton Goodland property for roughly $4 million below its purchase price two years ago. In December 2020, Banyan paid $23 million for the property, according to records.

Completed in 1950, the 48,874-square-foot building used to be the Gale Fort Lauderdale Hotel. The Tiffany House Condominium that is also at 401 North Birch Road was not part of the recent sale.

Publicly traded DiamondRock, led by President and CEO Mark Brugger, owns 33 hotels across the U.S., including seven in Florida, according to the firm’s website. In addition to the two Fort Lauderdale properties, the company also owns five hotels in Destin, Marathon and Key West.

DiamondRock had a rough 2021 amid the pandemic. The company finished the year with a net loss of $195 million on $612 million in revenue, representing a nearly 34 percent revenue decline compared to 2019, according to its most recent quarterly report.

Still, hotel investors are showing renewed faith in the South Florida market. In February, Utah-based Dynamic City Capital bought a recently opened AC Hotel by Marriott in Fort Lauderdale for $74.3 million. In Miami Beach, Bloom Hotels paid $23.5 million for The Sixty-Sixty, an 82-key condo-hotel.

And in January, an affiliate of Toronto-based Palm Holdings bought the Element Miami International Airport Hotel for $20 million.





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