REHOBOTH BEACH, Del. - The Bellmoor Inn & Spa in Rehoboth Beach has been acquired by DiamondRock Hospitality Company for $31 million.
The Maryland-based company announced the acquisition Oct. 8, saying the purchase includes full ownership of the 79-room property. The deal works out to approximately $392,000 per room.
The hotel is located at 6 Christian St. in downtown Rehoboth Beach, just two blocks from the boardwalk.
DiamondRock described the purchase as an opportunity to expand its presence in Southern Delaware's tourism market, which the company says benefits from strong visitor demand and limited opportunities for new hotel development.
"The acquisition of The Bellmoor reflects our track record of leveraging long-standing relationships to uncover compelling investment opportunities. Southern Delaware is one of the East Coast’s most attractive leisure lodging
markets, drawing affluent repeat visitors from the Northeast Corridor and benefiting from significant barriers to new lodging supply. Combined with our attractive acquisition basis and proven asset management platform, we
believe these enduring fundamentals position The Bellmoor to generate meaningful free cash flow growth and long-term value for our shareholders," said Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality
Company.
DiamondRock plans to make improvements to the property during the offseason and implement operational changes aimed at increasing profit. DiamondRock said the acquisition is not expected to have a significant impact on its fourth-quarter earnings for 2026.
The Bellmoor joins a portfolio that now includes 35 hotels and resorts. DiamondRock operates as a real estate investment trust, investing in properties in major travel destinations and urban markets.
DiamondRock did not provide a timeline for the planned improvements or specify which areas of The Bellmoor would be updated.
